Annual Corruption Report 2013-2014

ETHICS AND ANTI-CORRUPTION COMMISSION
Report of Activities
and
Financial Statements
for the
Financial Year 2013/2014
for the
Ethics and Anti-Corruption Commission (EACC)
Tukomeshe Ufisadi, Tuijenge Kenya
Ethics and Anti-Corruption Commission Annual Report 2013/2014
2014 Ethics and Anti-Corruption Commission
Prepared and issued in accordance with Section 27 of the

Ethics and Anti-Corruption Act, 2011.
ii
Table of Contents
List of Tables ...................................................................................................................... vii
List of Figures ....................................................................................................................
viii
List of Abbreviations and Acronyms ...............................................................................
ix
Mission Statement..............................................................................................................
Members of the Ethics and Anti-Corruption Commission .............................................
xi
Message from the Chairperson ........................................................................................
xii
Message from the Secretary/Chief Executive Officer ....................................................
xiii
Chapter 1:
Background ...............................................................................................................
1.1 Introduction......................................................................................................................
1.2 Functions and Structure of EACC................................................................................
1.2.1 Functions....................................................................................................................
1.2.2 Structure.....................................................................................................................
1
1
1
1
2
Chapter 2:
Investigations .............................................................................................................
2.1 Introduction......................................................................................................................
2.2 Reports Received..............................................................................................................
2.3 Investigation of acts of corruption...............................................................................
2.3.1 Preliminary Inquiries...................................................................................................
2.3.2 Forensics Investigations................................................................................................
2.3.3 Proactive Investigations ..............................................................................................
2.3.4 Asset Tracing Investigations .......................................................................................
2.3.5 Reports to the Director of Public Prosecutions ............................................................
2.4 Criminal cases presented before court .........................................................................
3
3
3
4
4
5
16
20
22
22
iii
Chapter 3:
Litigation and Recovery of Illegally Acquired Public and Unexplained Assets ......
3.1 Introduction ......................................................................................................................
3.2 Recovery of illegally acquired public assets .................................................................
3.3 Suits and Preservation Applications Filed ...................................................................
3.4 Constitutional References, Judicial Review Applications and Other Cases

filed against the Commission .........................................................................................
3.5 Investigatory Applications ..............................................................................................
3.6 Recommendations for Legislative Reform ..................................................................
23
23
23
25
27
30
30
Chapter 4:
Corruption Prevention ...............................................................................................
4.1 Introduction ......................................................................................................................
4.2 Systems Review ................................................................................................................
4.3 Advisory Services .............................................................................................................
4.4 Education, Training and Public Awareness .................................................................
32
32
32
33
37
Chapter 5:
Ethics and Leadership ..............................................................................................
5.1 Introduction ....................................................................................................................
5.2 Ethics and Leadership Development ..........................................................................
5.3 Ethics Monitoring and Compliance ............................................................................
44
44
44
47
Chapter 6:
Partnerships, Networks and Coalitions Against Corruption ...................................
6.1 Introduction ....................................................................................................................
6.2 Kenya Leadership and Integrity Forum ......................................................................
6.3 Other forms of Partnerships ........................................................................................
iv
48
48
48
50
Chapter 7:
Institutional Capacity Building ................................................................................
7.1 Introduction ....................................................................................................................
7.2 Financial Resources ........................................................................................................
7.3 Human Resource Management ....................................................................................
7.3.1 Staff Complement ....................................................................................................
7.3.2 Job Evaluation Report ..............................................................................................
7.3.3 Skills and Competency Development..........................................................................
7.4 Information Communication Technology .................................................................
7.5 Corporate Communications .........................................................................................
7.5.1 Media relations .........................................................................................................
7.5.2 Website and Social Media .........................................................................................
7.6 Research and Transformation ......................................................................................
7.6.1 Corruption and Ethics Survey 2014 .........................................................................
7.6.2 An Evaluation of Corruption in Public Procurement: A Kenyan Experience ...........
7.6.3 Strategic Plan 2013-2018 ........................................................................................
7.7 Supply Chain Management ...........................................................................................
52
52
52
52
52
52
52
56
57
57
57
57
57
57
58
59
Chapter 8:
National and International Engagements ...............................................................
60
8.1 Introduction ....................................................................................................................
60
8.2 National Engagements ..................................................................................................
60
8.2.1 Engagements with Various Stakeholders ...................................................................
60
8.2.2 Media Awards .......................................................................................................... 61
8.2.3 Corporate Guests ......................................................................................................
61
8.2.4 Corporate Social Responsibility .................................................................................
62
8.3 International Engagements............................................................................................
63
8.3.1 Commonwealth Regional Conference for Heads of Anti-Corruption Agencies in
Africa....................................................................................................................... 63
8.3.2 Participation on Conferences, Seminars and meetings..................................................
63
Chapter 9:
Challenges................................................................................................................. 64
9.1 Introduction.....................................................................................................................
64
9.2 Policy and Legal Framework.........................................................................................
64
9.3 Slow Judicial Process and Adverse Court Decisions.................................................
64
9.4 Inadequate Capacity........................................................................................................
64
9.5 Demands of the Devolved System of Governance..................................................
64
Chapter 10:
Report of the Auditor General on the Finacial Statements for Ethics and
Anti-Corruption Commission for the Year End 30th June 2014 ...............................
10.1 Key Entity Information and Management ...........................................................
10.2 Commission Members .............................................................................................
10.3 Management Team ...................................................................................................
10.4 Chairmans Statement ..............................................................................................
10.5 Report of the Chief Executive Officer .................................................................
10.6 Corporate Governance Statement .........................................................................
10.7 Corporate Social Responsibility Statement ...........................................................
10.8 Report of the Commissioners ................................................................................
10.9 Statement of Management Responsibilities .........................................................
10.10 Report of the Independent Auditors on the Commission ................................
10.11 Statement of Financial Performance .....................................................................
10.12 Statement of Financial Position .............................................................................
10.13 Statement of Changes in Net Assets .....................................................................
10.14 Statement of Cash Flows ........................................................................................
10.15 Statement of Comparison of Budget and Actual Amounts ..............................
10.16 Notes to the Financial Statements .........................................................................
10.17 Progress on Follow-Up of Auditor Recommendations .....................................
vi
65
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67
67
68
69
71
71
71
72
73
76
77
78
79
80
81
94
List of Tables
Table 1: Number of Reports Received ...........................................................................
Table 2: Some of the Preliminary Inquiries Completed ..............................................
Table 3: Some of the Ongoing Forensic Investigations ..............................................
Table 4: Completed Forensic Investigations ..................................................................
Table 5: Major Disruptions ..............................................................................................
Table 6: Results of the Integrity Tests ............................................................................
Table 7: Highlights of some of the Sting Operations Cases before Court ..............
Table 8: Highlights of Some of the Properties Traced ................................................
Table 9: Action taken by the Director of Public Prosecutions ...................................
Table 10: Criminal cases presented before court .............................................................
Table 11: Recovered Public Assets ....................................................................................
Table 12: Recovery Suits and Preservation Applications Filed .....................................
Table 13: Constitutional References, Judicial Review Applications and Other Cases.
Table 14: Summary of Examination Findings and Recommendations .......................
Table 15: Counties covered in Advisory Programme .....................................................
Table 16: Sensitization Programs Undertaken in Schools by County ..........................
Table 17: Sensitization of Education Managers by Sub-Sector ....................................
Table 18: Training of Integrity Assurance Officers by Institution ...............................
Table 19: Number of Corruption Prevention Committee (CPC) Training ................
Table 20: IEC Materials Developed ...................................................................................
Table 21: General Sensitization on Issues of Anti-Corruption by Sector ...................
Table 22: Public Institutions support in the development and review of Codes .......
Table 23: Memorandum of Understanding between EACC and Other Institutions
Table 24: Partnerships ..........................................................................................................
Table 25: Staff Training and Development Programs ....................................................
Table 26: Staff Training Abroad ........................................................................................
3
4
5
7
16
17
18
21
22
22
23
25
27
32
34
38
38
40
41
42
43
45
50
51
53
53
vii
List of Figures
Figure 1: Organization structure of EACC ......................................................................
Figure 2: Categorization of Reports within the mandate of the Commission ...........
viii
2
4
List of Abbreviations and Acronyms

AAACA
Africa Association of Anti-Corruption

Authorities
KEPSHA
Kenya Primary School Head Teachers

Association
ACECA
Anti-Corruption and Economic Crimes

Act
KETRACO
Kenya Electricity Transmission

Company Limited
KICD
Kenya Institute of Curriculum

Development
AIDS
Acquired Immuno Deficiency Syndrome
CBAM
Community Based Anti-Corruption

Monitor
KNEC
Kenya National Examinations Council
CDE
County Director of Education
KNH
Kenyatta National Hospital
CDF
Community Development Fund
KTRF
Kenya Tea Research Foundation
CIC
Commission for the Implementation of

the Constitution
MOA
Matatu Owners Association
CMA
Capital Markets Authority
MOE
Ministry of Education Science and

Technology
CPC
Corruption Prevention Committee
NACADA
National Campaign Against Drug

Abuse Authority
CRA
Corruption Risk Assessment
NACOSTI
National Commission for Science,

Technology and Innovation
DFID
Department for International

Development
NDMA
National Drought Management

Authority
DVD
Digital Video Disc
NIB
National Irrigation Board
EACC
Ethics and Anti-Corruption Commission
NGO
Non-Governmental Organization
EAAACA
East African Association of AntiCorruption Authorities
OCPD
Officer Commanding Police in a

Division Cooperation
ECJP
Ecumenical Centre for Justice and

Peace
OCS
Officer Commanding Police in a

Station
ETPA
Education, Training and Public

Awareness
POEA
Public Officers Ethics Act
FIDA
Federation of Women Lawyers
RRI
Rapid Results Initiative
RUC
Rongo University College
GDC
Geothermal Development Company
GIZ
German Agency for International

Cooperation
SDA
Seventh Day Adventist
GSU
General Service Unit
SEKU
South Eastern Kenya University
IAO
Integrity Assurance Officer
SRC
Salaries and Remuneration

Commission
ICPSK
Institute of Certified Public Secretaries

of Kenya
TI
Transparency International
IEC
Information and Education Materials
UNDAF
United Nations Development

Assistance Framework
JKUAT
Jomo Kenyatta University of Agriculture

and Technology
UNDP
United Nations Development

Program
KBC
Kenya Broadcasting Corporation
USIU
United States International University
KEPHIS
Kenya Plant Health Inspectorate

Service
ix
Mission Statement
Our Mandate
To combat and prevent corruption and economic crime in Kenya through
law enforcement, preventive measures, public education and promotion of
standards and practices of integrity, ethics and anti-corruption
Vision
A Corruption free Kenyan society that upholds integrity and the rule of law
Mission
To promote integrity and combat corruption through law enforcement,
prevention and education
Core Values
Integrity
Professionalism
Fidelity to the law
Courage
Teamwork
Innovation
Members of the Ethics and Anti-Corruption

Commission

Mr. Mumo Matemu, MBS
Commission Chairperson
Commissioner Irene C. Keino, MBS

Vice Chairperson,
Jane K. Onsongo, PhD

Commissioner (Prof.)
Mr. Halakhe D. Waqo, ACIArb

Commission Secretary/Chief
Executive Officer
xi
Message from the Chairperson
am glad to present the Ethics & Anti-Corruption Commission (EACC) Annual Report for
the financial year 2013/2014. This Report is prepared pursuant to Section 27 of the
Ethics and Anti-Corruption Act, 2011.
Corruption poses serious challenges to the attainment of the Kenya Vision 2030. To this
end, Kenya has put in place measures to combat and prevent corruption and unethical
practices. The Commission formulated and launched its strategic plan 2013-2018 to
guide anti-corruption efforts in the country. The Plan outlines measures to ensure an
effective, efficient and ethical public service. The Plan also provides measures to address
corruption and unethical practices associated with devolved system of governance in
Kenya.
During the financial year, in order to attain its strategic goals and objectives, the
Commission continued to build its capacity in terms of human resources and regional
presence. At the regional and international level, the Commission strengthened
partnerships and coalitions to enhance the fight against corruption. The Chairperson of
the Commission was elected to serve as the President of East Africa Association of AntiCorruption Authorities (EAAACA) for a period of 2 years.
Going forward, the Commission will work closely with relevant public institutions to fasttrack the development of the national ethics and anti-corruption policy, strengthening of
the anti-corruption legal and institutional framework and expand its services across the
country.
I call upon all Kenyans and stakeholders to individually and collectively make a conscious
decision not to participate in, or tolerate corruption in any of its facets and spheres.
Tukomeshe Ufisadi, Tuijenge Kenya!
Thank you
MUMO MATEMU, MBS

CHAIRPERSON
xii
Message from the Secretary/Chief Executive Officer
n the financial year 2013/2014, the Commission made remarkable strides in

implementing its mandate to combat and prevent corruption and unethical practices
as provided in the Ethics and Anti-Corruption Commission Act, 2011. Highlights of key
achievements are presented hereunder.
Law Enforcement Mandate
The Commission investigated and completed 68 reports and forwarded investigation
files to the Director of Public Prosecutions with various recommendations. A total of 22
Asset-Tracing investigations of illegally acquired assets estimated at Kshs 7.214 Billion
were undertaken. Assets valued at Kshs.2.068 Billion were recovered through court
proceedings and out of court settlements. Proactive investigations leading to 16 disruption
of corruption networks were undertaken averting loss of public resources valued at Kshs.
5.6 billion.
Corruption Prevention
The Commission conducted examinations into policies and procedures and practices of
work in 2 public institutions to identify corruption loopholes and recommend measures to
seal loopholes. One follow-up on the status of implementation of recommendations on a
previous examination was carried out. Additionally, 84 Corruption Risk Assessments were
carried out to map out corruption prone areas at the national and county government
levels. Under the performance contracting framework, the Commission advised 258
public institutions on the implementation of the corruption eradication indicator.
Public Education
The Commission trained 90 Integrity Assurance Officers and 499 members of Corruption
Prevention Committees within the framework of performance contracting in the public
service. Under the Public Outreach Programme, the Commission sensitized over 600,000
people. Additionally, 72,078 pupils and students from 101 primary and secondary schools
in 9 counties were sensitized on formation of Integrity Clubs and value-based character.
The Commission also trained 451 managers in the education sector. To support the
anti-corruption sensitization and awareness programme, the Commission developed and
disseminated over 100,000 IEC materials. Besides, the Commission sponsored the anticorruption category for the 2013 Drama Festival held in Nyeri.
Ethics and Leadership
The Commission developed draft Leadership and Integrity Regulations and submitted to
Parliament for consideration and approval. In addition, the Commission reviewed codes
of conduct for 25 public institutions within the framework of performance contracting
in the public service. Various notices were also issued to responsible Commissions,
independent offices and county governments on their responsibility to implement the
provisions of the leadership and integrity act 2012. On enforcement of codes of conduct,
a total of 75 reports on violation of codes of ethics were received and processed. Further,
the Commission received and processed requests for background checks on integrity for
applicants seeking various appointive positions in the public service.
xiii
Institutional Capacity
In the 2013/2014, the Commission was allocated Kenya Shillings 1,245,066,500 in the
Printed Estimates to finance its operations. In the same period, the Commission recruited
an additional 59 staff members to its establishment stand at 264 by the end of the year.
The Commission undertook a Job Evaluation to guide its capacity development. Further,
the Commission continued to modernize its operational environment through automation.
Challenges
The Commission faced a number of challenges in the implementation of its mandate.
These included human resource constraints, inadequate policy and legal framework, slow
judicial processes and limited reach across the country for anti-corruption services. To
surmount these challenges, we look forward to working closely with our stakeholders and
Kenyans in general to make Kenya a corruption free society that upholds integrity and
the rule of law.
Finally, I wish to thank all Kenyans for their support and involvement in the fight against
corruption. Further, I appreciate the support, dedication and commitment of the EACC
staff in discharging the Commissions mandate.
HALAKHE D. WAQO, ACIArb
SECRETARY/CHIEF EXECUTIVE OFFICER
xiv
Chapter 1:
Background
1.1 Introduction
The Ethics and Anti-Corruption Commission (EACC) is a statutory body established under the Ethics
and Anti-Corruption Act, 2011. Its mandate is to combat and prevent corruption and economic crime in
Kenya through law enforcement, preventive measures, public education and promotion of standards
and practices of integrity, ethics and anti-corruption. The mandate is implemented through its Strategic
Plan (2013-2018).
The Strategic Plan, launched by H.E. Uhuru Kenyatta, the President of the Republic of
Kenya and Commander in Chief of the Kenya Defense Forces on 18th March 2014, outlines
the strategic goals, objectives, strategies and activities of the Commission to combat and
prevent corruption in Kenya over the next five years.
This Annual Report is prepared pursuant to the provisions of Section 27 of the Ethics
and Anti-Corruption Act, 2011. The Report contains the financial statement of the
Commission; details of activities undertaken and achievements realized; requisite
statistical information; and challenges encountered in the review period.
1.2 Functions and Structure of EACC

1.2.1 Functions
The Commission derives its mandate from Article 79 and 252 of the Constitution of Kenya 2010,
the Ethics and Anti-Corruption Commission Act, 2011, the Anti-Corruption and Economic Crimes
Act, 2003 and the Leadership and Integrity Act, 2012. The functions of the Commission are:
a) To investigate and recommend to the Director of Public Prosecutions the
prosecution of any acts of corruption;
b) Tracing of public assets and instituting court action towards recovery and/or
protection of such assets;
c) Court proceedings towards freezing or confiscation of proceeds of corruption or
related to corruption, payment of compensation, or other punitive or disciplinary
measures, and for forfeiture of unexplained asset;
d) Prevention, public education and public awareness;
e) Conciliation, mediation and negotiation;
f) Advisory services to other institutions on matters within its mandate;
g) Enforcement of ethics and integrity laws under Chapter Six of the Constitution;
h) Partnerships with state and public officers to promote ethics and integrity;
i) Developing and promoting standards and best practices in integrity;
j) Developing codes of conduct;
k) Overseeing enforcement of codes of ethics for public officers;
l) Investigating and recommending prosecution for violation of codes of ethics; and
m) Monitoring the practices and procedures of public bodies to detect corruption
and secure revision of methods of work.
1.2.2 Structure
Figure 1: Organization structure of EACC

Commission
Chairperson & 2
Commissioners
Secretary/CEO
Deputy Secretary/CEO
Corporate Services
Deputy Secretary/CEO
Technical Services
Director
Services
Director Legal
Services
Director
Invest
Director
Finance and
Planning
Director HR and
Internal
Audit
SCM
Director Ethics
and Leadership
R&T
CC
Legend:
CEO
HR Human Resources
SCM Supply Chain Management
R&T
CC
ICT
KLIF Kenya Leadership and Integrity Forum
ICT
Regional
KLIF
Chapter 2:
Investigations
2.1 Introduction
The Commission is mandated to investigate acts of corruption and violation of codes

of ethics and make recommendations to the Director of Public Prosecutions (DPP). It is
also mandated to trace illegally acquired public assets. This function involves receiving
reports, investigating acts of corruption and violation of codes of ethics, tracing illegally
acquired public assets and disrupting corruption networks.
2.2 Reports Received
In the year under review, the Commission received a total of 4,006 reports representing
an increment of 19 percent from 3,355 in the previous year. Table 1 provides a breakdown
of the reports by office.
Table 1: Number of Reports Received
S/No.
Office
No. of Reports
Nairobi
2,379
Kisumu
526
Mombasa
358
Eldoret
246
Nyeri
79
Garissa
88
Mobile Office (Outreach activities)
101
Huduma Centre GPO, Nairobi
229
Total
4,006
Of the 4,006 reports received: 1,950 were found to be within the Commissions mandate;
1,132 were not within the mandate of the Commission and the complainants were advised
on where to report; 681 were referred to relevant agencies for action; 178 were marked
for no further action since they were found to be under action by relevant agencies and
65 were incomplete and the complainants advised to provide additional information. The
reports within the Commissions mandate were categorized as shown in figure 2.
Figure 2: Categorization of Reports within the mandate of the Commission
2.3 Investigation of acts of corruption
Investigating acts of corruption involves preliminary inquiries, forensic investigations,

asset-tracing and proactive investigations.
2.3.1 Preliminary Inquiries
A total of 71 preliminary inquiries (PIs) were undertaken to determine whether the

reports could be pursued through forensic investigations. Out of these, only 14 inquiries
were progressed to forensic investigations while 25 are ongoing and the rest were
recommended for closure. Some of the preliminary inquiries completed are provided in
Table 2.
Table 2: Some of the Preliminary Inquiries Completed
S/No.
Summary
Institution
Alleged
Value
(Ksh)
EACC/PI/INQ/29/13 Allegations of irregularities in the

process of recruitment of Principal Secretaries by the Public
Service Commission.
Public Service
Commission
Not
applicable
EACC/PI/INQ/41/13 Irregular award of tender for design,

supply, installation and commissioning of command and
control system in the National Police Service.
National Police
Service
17 billionw
EACC/PI/INQ/38/13 Irregular acquisition of the official

residence of the Chief Justice.
Judiciary
310 million
EACC/PI/INQ/01/14 Irregular award of tender for

construction of standard gauge railway to China Road and
Bridge Construction.
Kenya Railways
327 billion
EACC/PI/INQ/11/14 Fraudulent transfer of Youth Enterprise

Development Funds to Indo Africa Finance
Youth Enterprise
Development
Fund
150 million
2.3.2 Forensics Investigations
A total of 68 forensic investigations were completed while 144 are ongoing. The rest of
the reported cases were pending investigations. In addition, the Commission supported
prosecution and court processes in 118 cases pending before court. Table 3 provides
highlights of some of the major ongoing forensic investigations while Table 4 provides all
completed forensic investigations.
Table 3: Some of the Ongoing Forensic Investigations
Nature of Inquiry /
Allegation
Institution
Amount
Involved
(Ksh)
S/No.
Inquiry No.
1.
EACC/FI/
INQ/48/2014
Procurement irregularities
in the tender in respect of
Standard gauge Railway
Kenya Railways and

Ministry of Transport
327 Billion
2.
EACC/FI/
INQ/66/2014
Allegations of irregular
procurement of laptops at the
MOE
Ministry of Education
26 Billion
3.
EACC/FI/
INQ/70/2014
Allegations of corruption in
the procurement of rigs in
Geo-thermal Development
Corporation (GDC)
Geo-thermal
Development
Corporation
5.6 Billion
4.
EACC/FI/
INQ/57/2013
Allegation of irregularities in
the Administration and funds
transfers between KEMRIs
accounts at two local banks.
KEMRI & two local banks
250 Million
5.
EACC/FI/
INQ/27/2013
Allegations of questionable
expenditures amounting to
Kshs. 4,476,331,237 by the
Kenya National Bureau of
Statistics ( KNBS) during the
2009 Population and Housing
Census
Kenya National Bureau of 4.4 Billion

Statistics
6.
EACC/FI/
INQ/65/2013
Allegations of corrupt conduct

in Kiambu County by senior
officials in a tender for supply
of drugs.
Kiambu County
100 Million
7.
EACC/FI/
INQ/66/2013
Allegations of corruption in
currency printing contracts
between Central Bank of Kenya
and De La Rue Company.
Central Bank of Kenya
1.83 Billion
8.
EACC/FI/
INQ/18/2014
Allegations that unauthorized

rents for January-June were
paid by the Judiciary contrary
to terms of lease agreement
and in excess of agreed rent in
the Elgon Place
Judiciary
169 Million
Inquiry No.
Nature of Inquiry /
Allegation
Institution
Amount
Involved
(Ksh)
EACC/FI/
INQ/01/2013
Allegation of embezzlement
of funds by a construction
company and public servants
in the ongoing construction
of Kamukuywa - Kaptama
Kapsokwony Kimilili Road.
Ministry of Public Works

and Roads
300 Million
10.
EACC/FI/
INQ.43/2013
An inquiry into allegations that

independent Electoral and
Boundaries Commission IEBC
irregularly awarded tender for
supply of Results Transmission
system Accessories during the
2012/2013 financial year.
IEBC
1.397 Billion
11.
EACC/FI/
INQ/57/2014
Alleged Conflict of Interest by

Kenya Pipeline Company EngiKenya Pipeline Company
neering Manager in Engineering
procurements
100 Million
12.
EACC/FI/
INQ/78/2014
Allegation of bribery and abuse

of office against Officers of the
Department of Immigration in
processing work permit.
Department of Immigration
13.
EACC/NYR/ FI/
INQ/ 04/2014
Allegation of abuse of office by

MCAs Meru county government
by irregular awarding
themselves construction
contracts.
Meru County Government
200 Million
14.
EACC/GSA/FI/
INQ/1/2013
Falsely overstating the number

of pupils to gain from the FPE
irregularly.
Education Ministry
Not known
15.
EACC/GSA/
INQ/6/2013
Allegations of grabbing of
Garissa primary school land
by an influential businessman
based in Garissa
Garissa Primary
Approx. 1 Billion
16
EACC/
GSA/INQ/
FI/11/2013
Inquiry into allegations of procurement malpractices in the

tender for the construction of
hostels for the Garissa University College.
Garrisa University collage 430 Million
17.
EACC/
MSA/FI/
INQ/03/2014
Inquiry into allegation that the

Kilifi County Government irreguKilifi County Government
larly procured Governors house
at a sum of Kshs.140 million.
S/No.
9.
140 million
Table 4: Completed Forensic Investigations

S/No.
Case/Inquiry
No.
Nature of Inquiry
Institution
Amount
Involved (Ksh)
1.
EACC/FI/
INQ/25/2012
Misappropriation of an
imprest by an official of Youth
Enterprise Development Fund
The Youth Fund
3,176,000
EACC/FI/
INQ/63/2013
Irregularities in the
procurement of Hatcheries
estimated at Kshs.200
million by Youth Enterprise
Development Fund
Youth Enterprise
Development
Fund
200 Million
3.
KACC/FI/
INQ/33/11
Inquiry into allegations of

cash withdrawals by Ministry
of Education science and
technology which were not
accounted for.
Ministry of
Education science
and technology
17.8 Million
4.
KACC/FI/
INQ/51/2011
Alleged irregular variation of

contract from 42 million to 77
million in the Ministry of Local
Government
wMinistry of Local
Government
77 Million
5.
EACC/FI/
INQ/03/2013
Alleged Embezzlement of
CDF funds by a former MP.
Tigania West
Water Project
20 Million
6.
EACC/FI/
INQ/29(B)/13
That PSC Chairperson failed

to comply with a notice to
provide information
PSC
N/A
7.
KACC/FI/
INQ/32/13
Allegations of procurements
irregularities at the
Independent Electoral and
Boundaries Commission
Independent
Electoral and
Boundaries
Commission
1.397 billion
8.
KACC/
INQ/54/2003
Allegations of irregular
procurement in the tender
for insurance services by the
City Council of Nairobi, year
2003-2004
City Council of
Nairobi
9.
EACC/FI/
INQ/47/2013
Allegations of procurement
irregularities at Kenya
Tourism Board
Kenya Tourism
Board
N/A
EACC/FI/
INQ/35/13
Alleged failure to follow

procurement procedures in
the disposal of Mercedes
Benz E200 by the Insurance
Regulatory Authority (IRA) in
2012.
Insurance
Regulatory
Authority
2.
10.
Case/Inquiry
No.
Nature of Inquiry
Institution
Amount
Involved (Ksh)
11.
EACC/FI/
INQ/55/13
Alleged failure to follow

procurement procedures
by IRA Officials in the
procurement of tribe hotel for
a Board Christmas luncheon
in the year 2011
IRA
12.
EACC/FI/
INQ/164/2010
Allegations that NWSC had

overpaid debt collectors
NWSC
13.
KACC/FI/
INQ/023/2011
Allegations that Hon. Richard

Momoima Onyonka, MP
Kitutu Chache purchased
sugar worth Kshs 137
million from Chemelil Sugar
Company. using CDF funds
and failed to remit the
requisite VAT
CDF
137 million
14.
KACC/FI/
INQ/40/13
Misappropriation of public
funds by an official of youth
enterprise Development fund
Youth enterprise
Development
800,000
EACC/FI/
INQ/13/2013
Kenya Rural Roads Authority

case; Inquiry into allegations
of electronic fund transfers of
kshs 89,543,270 to a wrong
account at KERRA.
Kenya Rural Roads

Authority case
89,543,270
EACC/FI/
INQ/51/2013
An inquiry into allegation that

Eldoret South Constituency
Development Fund Tender
Committee irregularly
awarded M/s Point One
International Limited Tender
for the construction of
Kamuyu- Ndungulu road
project at Kshs. 2,500,000
during financial year
2010/2011
Eldoret South
Constituency
Development
Fund
2.5 Million
EACC/FI/
INQ/52/2013
An inquiry into allegations

that Eldoret South
Constituency Development
Fund Tender Committee
irregularly awarded M/s
Betaland Enterprises a
tender for the Construction
of Kapkagaron Nganiat road
project for Kshs. 2,500,000
during the financial year
2010/2011
Eldoret South
Constituency
Development
Fund
2.5 Million
S/No.
15.
16.
17.
N/A
Case/Inquiry
No.
Nature of Inquiry
Institution
Amount
Involved (Ksh)
EACC/FI/
INQ/56/13
Alleged irregular procurement

of supply and delivery of
Electronic Fiscal Devices
Management System
(EFDMS) Software and
associated services in tender
no. KRA/HQS/ICB-039/201213 by KRA
KRA
KACC/FI/
INQ/177/2010
The Ministry of Local

Government received
information that the County
Council of Turkana was
purchasing large amounts of
construction goods from Apex
Steel Ltd and yet the Council
did not have any projects
requiring such large volumes.
The Ministry then sent a
letter to this Commission to
undertake investigation.
Turkana County
Council
7 million
EACC/FI/
INQ/04/2012
Allegation of diversion of
neutral spirit purchased
from Agrochemical and
food Company Ltd meant
for export by one Rinesh to
Rwanda occasioning a loss of
Ksh 5,363,400
Agrochemical and
food Company Ltd
5,363,400
KACC/FI/
INQ/44/07
Inquiry into allegations of

misappropriation of Kshs
200,000 meant for National
Aids Control Council by
officials of World Changers
Self Help Group (WSCSHG) of
Eldoret North.
National Aids
Control Council
200,000
22.
KACC/FI/
IN/21/2014

of irregular procurement
of Meridian Medical Centre
Limited by National Hospital
Insurance Fund to provide
outpatient Medical Services
to members of NHIF under a
pilot scheme.
NHIF
116,935,500
23.
EACC/FI/
INQ/24/2013
Allegations of abuse of
office and violations of the
procurement laws by the
director of KEWI
KEWI
S/No.
18.
19.
20.
21.
Case/Inquiry
No.
Nature of Inquiry
Institution
Amount
Involved (Ksh)
24.
EACC/FI/
INQ/48/2013
An inquiry into allegation

that Dalko Enterprises Ltd
was irregularly awarded the
construction of Sigilai- Tulwet
Road project by Eldoret
South Constituency in the
Financial 2010/2011
Eldoret South
Constituency
25.
EACC/FI/
INQ/74/2013
Alleged embezzlement
of USD 410,222 by the
Officials of Football Kenya
Federation(FKF)
Football Kenya
Federation
USD 410,222
EACC/FI/
INQ/61/2013
Alleged Embezzlement by
former PS of Ksh116M
meant to buy housing
units for prisons Officers
and Ksh219 meant for
construction of girls Borstal
School at Kamae in Kamiti
Ministry of Home
Affairs
335 Million
EACC/FI/
INQ/32/13
The Independent Electoral

and Boundaries Commission
(IEBC) irregularly awarded
the tender for supply of
Biometric Voter Registration
(BVR) Kits and Accessories
to Safran Morpho vide
the Canadian Commercial
Corporate
Independent
Electoral And
Boundaries
Commission
(IEBC)
7 Billion
28.
EACC/FI/INQ/62
/13
A group called Ahero

Disabled Group applied
and received a grant of
Shs.500,000 from National
Council for Persons with
Disabilities (NCPWD). It
is alleged that the Group
Chairman Mr. Jack Orem
Migwala embezzled the whole
grant
National Council
For Persons
With Disabilities
(NCPWD)
500,000
29.
EACC/FI/
INQ/06/14
Irregular procurement of CJs

residence by Senior Judiciary
officers at Kshs 310 Million
Judiciary
310 Million
S/No.
26.
27.
10
Case/Inquiry
No.
Nature of Inquiry
Institution
Amount
Involved (Ksh)
KACC/FI/
INQ/26/09
Allegations that payments

amounting to ksh.51,520,000
in respect of spares for
mainland pumps supplied
by ABC Metallurgical limited
to Kenya Pipeline Company
Ltd was supported by fake
documents
Kenya Pipeline
Company Ltd
51 Million
31.
KACC/FI/
INQ/37/2009
Inquiry into allegations

by an MP that Councilors
& Chief Officers at Maua
Municipal Council allocated
stalls at Maua Bus Park to
themselves, friends and
relatives & thereafter sold
stalls at between Kshs.
50,000 and 150,000
Maua Municipal
Council
32.
EACC/FI/
INQ/58/2013
Allegations that a Senior

official at KMC irregularly
withdrew funds from the
accounts of KMC
Kenya Meat
Commission
11.5 Million
33.
KACC/FI/
INQ/107/09
Allegations of
misappropriations of 19%
funds at County Council of
Narok
Narok County
3.151 Million
EACC/FI/
INQ/10/2013
Allegations of lack of
accountability of Contractors
retention money covering
the FY 2006/2007 to FY
2009/2010 in the Ministry of
Roads
Ministry of Roads
12 Million
EACC/FI/
INQ53/2013
Irregular award of tender to

Yoga General Construction 0f
A104- CDF office road project
at Kshs. 500,000 by Eldoret
South Constituency Tender
Committee during financial
year 2010-2011.
CDF Eldoret South

Constituency
500, 000
S/No.
30.
34.
35.
11
Case/Inquiry
No.
Nature of Inquiry
Institution
Amount
Involved (Ksh)
EACC/FI/
INQ/08/2014

that the Board of Trustees
of NSSF irregularly
approved a budget of
Kshs. 5,053,520,321
for regularization and
infrastructure development
of Tassia II scheme and
irregularly awarded the
tender to China Jiangxi
International (K) Limited
NSSF
5. 053 Billion
EACC/FI/
INQ/01/12

of irregularly awarded the
contract for renovation of
communication laboratory
building at a cost of Ksh
7,055,560 without following
Public Procurement and
Disposal Act 2005 and the
2006 Regulations.
Multi Media
University
7.055 Million
38.
EACC/FI/
INQ/47/2014
An inquiry that Machakos

County Assembly purchased
second hand laptops for
County representatives
through single sourcing
Machakos County
4.5 Million
39.
KACC/FI/
INQ31/2006
Inquiry into allegation of

irregular employment of
teachers by TSC
TSC
Nil
40.
EACC/FI/
INQ/49/2014
irregularities and abuse of
Office against a Principal of a
Girls High School in Nairobi
A Principal of a
Girls High School
in Nairobi
388,000
41.
EACC/FI/
INQ/45/2014
Corruption and abuse of

office by a senior official at
Immigration Department
Immigration
N/A
EACC/FI/
INQ/1/2014
Inquiry into irregular

procurement in the tender
for the construction of the
Library and ICT Resource
Centre at Kiambu Institute
of Science and Technology
(KIST) costing Kshs. 65
Million
KIST
65 Million
S/No.
36.
37.
42.
12
S/No.
Case/Inquiry
No.
Nature of Inquiry
Institution
Amount
Involved
(Ksh)
43.
EACC/FI/
INQ/85/2014
Inquiry into alleged

misappropriation of Public
funds at Football Kenya
Federation
Football Kenya
Federation
25 Million
44.
EACC/FI/
INQ/53/2014
Alleged misrepresentation
of COTU on the Board
of Trustees of NSSF by
a representative whose
nomination had been
revoked.
NSSF
45.
EACC/FI/
INQ/45/14
Irregular issuing of Work

permits at Immigration
Department
Immigration
46.
EACC/FI/
INQ/16/2013
Allegations of fraudulent
payment and embezzlement
of funds under the world
bank funded Arid Lands
Resource Management
Project 2 in Kajiado District
Ministry of State
for Special
Programmes
26,470,332
47.
EACC/NYR/FI/
INQ/02/2011
Abuse of office
Nyeri Lands
Registry
5 Million
48.
EACC/NYR/FI/
INQ/01/2012
Irregular procurement of
goods
Kagumo Teachers
College
10 Million
49.
EACC/NYR/FI/
INQ/07/2011
Abuse of office/ Irregular

procurement of goods and
services
Nyambene County
Council
1.3 Million
50.
EACC/NYR/FI/
INQ/07/2012
Abuse of office
Chuka County
Council
4.7 Million
51.
EACC/NYR/FI/
INQ/02/2012
Breach of trust by persons

employed in public service/
abuse of office
Laikipia Lands
Registry, Nanyuki
1.2 Million
52.
EACC/GSA/FI/
INQ/3/2013
Allegations of Fraudulent
Acquisition of Council Land
Gsa/Mun/Block III/59
Housing
Department
7m
53.
EACC/GSA/
PI/02/2012
Alleged grabbing of
land by chiefs and Chief
Officers of Ijara County
Council
Kenya Airports
Authority
Not valued
13
S/No.
54,
55.
56.
57.
58.
59.
14
Case/Inquiry
No.
Nature of Inquiry
Institution
Amount
Involved
(Ksh)
EACC/GSA/INO/
PI/8/2013
irregularities during tendering
of a contract to fence
the county government
compound
Tana River County

Government
17m
EACC/MSA/FI/
INQI 05/2014
Inquiry into allegation

of irregular allocation of
official Mombasa District
Commissioner Residence
house No. HG 199 built on
plot No. 3074/I/MN to Lekyo
Tours
Ministry of Lands
36 million
EACC/MSA/FI/
INQ/11/2013
Inquiry into allegation that

the Kilifi County Government
irregularly awarded the
tender for the upgrading
and operation of county
slaughterhouse at Uwanja wa
Ndege in Rabai Sub-County
to a company known as
Tenacious Agencies.
Kilifi County
Government
350,000 per
month
EACC/MSA/FI/
INQ/14/13
Allegation that Kenya Railway

Corporations land in Kizingo
measuring 1.06 acres was
fraudulently subdivided into
two and title deeds issued to
private firms. The title deeds
numbers are Mombasa/
Block XXVI/1137 and 687
in the names of Kizingo
Condominiums Limited and
Acop Limited respectively
Kenya Railway
Corporations
35 million
EACC/MSA/FI/
INQ/11/12

the Treasurer of the Likoni
Constituency Development
Fund (CDF) Committee, Mr.
Hamisi Mwalimu Masudi,
the son to the area MP, has
been allocating himself CDF
funded projects, including the
construction of administration
block at Mrima Secondary
School
Likoni Constituency
Development Fund
(CDF) Committee
9 million
EACC/MSA/FI/
INQ/06/2013
Inquiry into allegations that

Kshs 1.6 million meant for
construction of a cattle dip
by Lamu west CDF was
irregularly withdrawn from
the Project account at Kenya
Commercial Bank Mpeketoni
Lamu West CDF
1.6 million
S/No.
60.
61.
62.
63.
64.
Case/Inquiry
No.
Nature of Inquiry
Institution
Amount
Involved
(Ksh)
EACC/MSA/PI/
INQ/05/14

the Kenya Ports Authority
(KPA) irregularly awarded
Tender No. KPA/055/2013-14/
CCE: Design, Manufacture,
Supply, Testing And
Commissioning of One (1)
Unit New Mobile Harbour
Crane to the highest
evaluated bidder, instead of
the lowest evaluated bidder.
Kenya Ports
Authority
500 million
EACC/MSA/FI/
INQ/10/14

that Kenya Ports Authority
designed tender documents
with very specific and limiting
conditions designed to suit
one single supplier. The
supply and commissioning
of one (1) Tug Boat - Tender
No. KPA/057/2013-14/MO
was reportedly designed
in a manner that only
one company, N/s Damen
Shipyard can comply with
all the requirements. In
the tender document,
data sheet clause 12 (xii),
(xviii), (xx), (xxi) and (xxiii)
combined with some technical
specifications reportedly
limit free competition for the
tender.
Kenya Ports
Authority
850 million
EACC/MSA/FI/INQ
11/ 2013
Inquiry into alleged failure by

Visan Fright Agencies Limited
to pay KEBS destination fees
in respect to entry No. 2013
MSA 4332299.
Visan Fright
Agencies Limited
260,000
EACC/MSA/FI/
INQ/13/13

the Magarini Constituency
Development Fund (CDF)
Manager abused his office
by awarding bursaries to two
students who are not from
the constituency and who are
alleged to be his relatives.
Constituency
Development Fund
Manager
290,000
EACC/MSA/FI/
INQ/21/10

the Agricultural Development
Corporation (ADC) land
in Malindi was alienate to
private developers.
ADC
Not valued
15
Case/Inquiry
No.
Nature of Inquiry
Institution
Amount
Involved
(Ksh)
65.
EACC/MSA/FI/
INQ/06/2014

Mr. Stephen Kariuki Ikua,
County Commissioner Lamu
was irregularly allocated
parcel of land No. Lamu/Hindi
Magogoni/598 on which Mr.
Joseph Muchemi Njagi was
squatting
County
Commissioner
Not valued
66.
43954
Abuse of office by the

Principal by single sourcing
and having ghost workers
Sigalagala Institute
Nil
67.
42155
Irregularities in procurement
and award of contracts for
the renovation of Governors
office, County offices and
supply of generators
Busia County
Government
60 Million
68.
45014
Irregular purchase of
furniture and equipment for
the speakers house
Kisumu County
Assembly
3.7 Million
S/No.
2.3.3 Proactive Investigations
i) Intelligence Probes
Proactive investigations, which involve intelligence probes, are intended to disrupt
corruption networks. A total of 187 intelligence probes were conducted of which 60 were
completed leading to 16 disruptions averting a loss estimated at Kshs. 5.6 billion. Table
5 highlights some of the disruptions.
Table 5: Major Disruptions
S/No.
Brief details
Organization
Involved
Amount
Involved
(Ksh)
1.
Case No. 42644: Two containers carrying 6,900 boxes of

counterfeit ball point pens seized in Kilindini Port from
China.
Kenya Bureau of
Standards
138 Million
2.
Case No. 42993: Irregular tender for the construction of

Multi-Media University Multi-Media Engineering Complex
Multi-Media
University
1.8 Billion
3.
Case No. 43128: Irregular procurement of Public relations

Services at the Multi-Media University
Multi-Media
University
7.1 Million
4.
Case No. 42887: Irregular acquisition of land Property no

LR 1810/IV/71 allocated to the Kuwaiti Embassy.
Ministry of Lands
2 billion
5.
EACC/MSA/PI/INQ/008/14: Irregular tewnder to renovate

and extend Kilifi Deputy Governors official residence.
Kilifi County
government
15 million
16
S/No.
Brief details
Organization
Involved
Amount
Involved
(Ksh)
6.
EACC/MSA/FI/INQ/10/14: Allegations of bid rigging in the

supply and commissioning of a tug boat for the Kenya Ports
Authority
Kenya Ports
Authority
850 Million
7.
EACC/MSA/PI/INQ/05/14: An allegation that the Kenya

Ports Authority (KPA) had irregularly awarded tender for
supply of a mobile crane tender to the highest evaluated
bidder, instead of the lowest evaluated bidder
Kenya Ports
Authority
500 Million
8.
EACC/MSA/PI/INQ/13/14: We seized 420 bags of

counterfeit Mumias Brown sugar.
Anti-Counterfeit
Agency
160 Million
9.
EACC/MSA/PI/INQ/12/14: An attempted tax evasion of

Kshs 85 million by a contractor contracted to supply various
items to the Kenya Police and Administration Police.
Kenya Revenue
Authority
85 million
Grand Total
5.6 Billion
ii) Integrity Tests

In addition, a total of 367 integrity tests were conducted. Table 6 provides a breakdown
of the results of the integrity tests.
Table 6: Results of the Integrity Tests
S/No.
Institution
Pass
Fail
1.
Nairobi City County Government
14
2.
Ministry of Housing
3.
National Museum of Kenya
4.
Ministry of Health
21
36
5.
National Police Service
31
135
6.
Ministry of Interior-Provincial
7.
Law Society of Kenya
8.
Judiciary
9.
Ministry of Labor
10.
Department of Civil registration
11.
Ministry of Lands
12.
Fisheries department
13.
County Government of Uasin Gishu
14.
Kenya Forest Service
15.
National Registration Bureau
16,
Kenya Defense Forces
17.
Office of the President
18.
Kenya Prisons Department
17
S/No.
Institution
Pass
Fail
19.
20.
Ministry of Agriculture
21.
Kenya National Library
22.
Huduma Centre Kenya
23.
Kenya Revenue Authority
24.
National Youth Service- NYS
25.
State Law Office- Registrar of Companies
26.
National Transport & Safety Authority- NTSA
27.
County Government of Homa Bay
28.
County Government of Embu
29.
County Government of Bungoma
30.
Motor Vehicle Inspection Unit
104
263
Total
From Table 6, it can be noted that there were 263 failures from the integrity tests
conducted. In such cases, the relevant institutions were informed of the results so as
to institute further action. The integrity tests contributed to the deterrence of corrupt
practices and reduction in corruption incidences by creating commission omnipresence
in public institutions.
iii) Sting Operations
A total of 97 operations were carried out of which 29 are pending before court while
68 are pending under investigation for additional evidence to be collected to support
prosecution. Of the cases in court, there were 2 convictions, 5 acquittals and 2 discharges.
Table 7 provides highlights of sting operation cases in court.
Table 7: Highlights of some of the Sting Operations Cases before Court
S/No.
1.
2.
18
Case Number
Offence
Parties
Charged
Amount
(Ksh)
CF. 5/2013
Corruptly soliciting and receiving a

benefit of Kshs. 100,000 contrary to
section 39(3)(a) as read with section
48(1) of ACECA.
John Njoroge
(MP Kasarani)
100,000
CF. 5/2014

benefit of Kshs. 15 million contrary to
48(1) of ACECA.
Maina NgumiManager in
Domestic Taxes
Department
KRA
15 Million
Offence
Parties
Charged
Amount
(Ksh)
CF. 2/2013

benefit of Ksh 80,000 contrary to
48(1) of ACECA.
Dr. Arthur
Kiprono Korir
(District Health
Officer), Eng.
Jeff Ocharo
Ogutta, (Dist.
Works Officer
Sotik)
80,000
CF. 10/2013

benefit of Ksh 4 million contrary to
48(1) of ACECA.
Richard Njoroge
Kimani.
4 million
CF. 4/2013
Corruptly soliciting for a benefit of Ksh

150,000 contrary to section 39(3)(a)
as read with section 48(1) of ACECA.
The complainant who applied for a
loan of Kshs.14, 000,000 from Kenya
Industrial Estate (KIE), reported
that the operations manager KIE,
demanded for a bribe of Kshs 150,000
as an inducement to facilitate the
processing of the said loan.
Tom Odeny,
an operations
manager KIE
150,000
6.
CF. 1/2014

48(1) of ACECA.
Paul Sira Ndive,

the Principal;
Wakaela
Secondary
School
10,000
7.
ACC 4/2013
MSA

48(1) of ACECA.
Vincent Alusi
Opiyo of Kenya
Power Limited
100,000
18,000
S/No.
3.
4.
5.
Case Number
8.
ACC 4/2014
MSA

18,000 contrary to section 39(3)(a) as
read with section 48(1) of ACECA.
Victor Abuga
and 4 others of
Kenya National
Highways
Authority and
National Police
Service
9.
ACC 5/2014
MSA

300,000 contrary to section 39(3)(a)
as read with section 48(1) of ACECA.
Aaron Kili Ngea

of KRA
300,000
ACC 6/14

section 39 (3) (a) as read with sec 48
(1) of the ACECA.
Dan Mbuvi
Ndonye
Kalamba of Land
Adjudication &
Settlement
10,000
10.
19
S/No.
11.
12.
13.
14.
15.
16.
17.
18.
Case Number
Offence
Parties
Charged
Amount
(Ksh)
ACC. 1/2013

benefit contrary to section 39(3)(a) as
Malik Wanjala
Barasa- Kenya
Forest service
as an inspector
20,000
ACC. 1/2014

benefit contrary to section 39(3)(a) as
Maggassan
Gwiyo & another
of National
Police Service
attached to
Kenya power.
40,000
ACC.813/14

48(1) of ACECA.
Gabriel Ouma
Ngira
13,000
ACC. 6/2013

48(1) of ACECA.
Paul Fredrick
Abade
50,000
ACC. 3/2014

48(1) of ACECA.
Stephen Omoro
Ouna
3,000
CR.831/871/13
Corruptly soliciting for a benefit of

Kshs. 1,000 contrary to section 39(3)
(a) as read with section 48(1) of
ACECA.
Walter Ochieng
Sirama a clerical
officer with
Uasin Gishu
Government
1,000
CR.713/49/14

Kshs. 5,000 contrary to section 39(3)
(a) as read with section 48(1) of
ACECA.
Police Constable
Abdi Jama
5,000
ACC. 1719/13

Kshs. 500 C/sec.39(3) as read with
Section 48(1) of the Anti-corruption
and Economic Crimes Act, No.3 of 2003
Samwel
Gichamu
Odongo
500
2.3.4 Asset Tracing Investigations
A total of 22 Asset-Tracing investigations were undertaken involving assets estimated at

Kshs 7.214 Billion. These included public land, government houses and cash. Table 8
provides the details of assets traced.
20
Table 8: Highlights of Some of the Properties Traced

S/No.
Particulars
Estimated
Value (Kshs)
1.
LR NO. 26700/1 belonging to Numerical Machining Complex Limited
1.438 Billion
2.
LR No. 26700/2 belonging to Numerical Machining Complex Limited
3.868 Billion
3.
LR No. 25433 belonging to Ngong Road Forest
10 Million
4.
LR No. LR No. Kisumu Municipality Block 12/124 and a High Grade

house No 80 No HG valued at Kshs. 0.018 Billion and belonging to
Nyanza Provincial Hospital
18 Million
5.
LR No. 25428 - IR 88425 belonging to Ngong Road Forest
10 Million
6.
LR No. 25435 - IR 86611 belonging to Ngong Road Forest;
10 Million
7.
LR. No. 25436 belonging to Ngong Road Forest;
10 Million
8.
LR. No. 25439 belonging to Ngong Road Forest;
10 Million
9.
LR No. Kisumu Municipality/Block 11/90 valued at belonging to Kisumu

Sunset Hotel
75 Million
10.
LR No. 209/2501, IR 2044 belonging to the City County of Nairobi
38 Million
11.
LR No. Nairobi Block104/520 belonging to Juja Road Estate
180 Million
12.
LR. No 36/VII/254 belonging to Pumwani Maternity Hospital
30 Million
13.
LR. No 36/VII/255 belonging to Pumwani Maternity Hospital
30 Million
14.
LR No 36/VII/257 belonging to Pumwani Maternity Hospital
31 Million
15.
31 Million
16.
31 Million
17.
45 Million
18.
LR No 37/272/5 belonging to Postal Corporation of Kenya
15 Million
19.
L.R. No. 37/386 belonging to City County of Nairobi
30 Million
20.
Cash belonging to the County Government of Meruw
429,000
21.
Cash belonging to the County Government of Samburu
25 Million
22.
Government House No. HG 199 on plot No. 3074/I/MN belonging to

District Commissioner- Mombasa
36 Million
23.
Parcels of land LR No Mombasa/Block XXVI/1137 and 687 measuring

1.06 acres belonging to Kenya Railway Corporations land in Kizingo
35 Million
24.
Assorted parcels of land, LR Nos Laikipia/Daiga Umande/Block 4

(Nyariginu)/495, 499, 499, and 811
900,000
25.
Assorted government houses within Eldoret Municipality, LR No. Eldoret

Municipality Block 5/465 485 all.
460 Million
21
2.3.5 Reports to the Director of Public Prosecutions
A total of 68 investigation reports were forwarded to the DPP in line with section 35
of the ACECA and section 11(1) (d) of the Ethics and Anti-Corruption Commission Act,
2011. This represents an increase of 23.6 percent from 55 reports in the previous year. Of
these reports, 44 were recommended for prosecution, 7 for administrative action and 17
for closure due to lack of evidence. Table 9 provides the details of the quarterly reports
forwarded to the DPP.
Table 9: Action taken by the Director of Public Prosecutions
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter
Total
Accepted
10
11
11
43
Not accepted
Action
Recommendation to prosecute
Recommendation for administrative action

Accepted
Not accepted
Accepted
14
Not accepted
Files returned for further investigations
Recommendation for closure
2.4 Criminal cases presented before court
A total of 58 criminal cases were presented before court as shown in Table 10.
Table 10: Criminal cases presented before court
Particulars of charge
No. of
cases
Soliciting, receiving, offering/giving of a benefit
30
Abuse of office
Misappropriation of public funds
Unlawful/fraudulent acquisition/disposal of public properties
Willful/careless failure to comply with procurement procedures
Conspiracy to defraud/commit an offence of corruption
False accounting by a public officer/Deceiving principal
Others; forgery, uttering false documents, attempts
Total
58
22
Chapter 3:
Litigation and Recovery of Illegally Acquired
Public and Unexplained Assets
3.1 Introduction
This section covers particulars of civil proceedings instituted by the Commission for
preservation and recovery of illegally acquired public assets, unexplained assets, restored
assets and cases filed against the Commission.
3.2 Recovery of illegally acquired public assets
Assets valued at approximately Kshs.2.068 Billion were recovered through court

proceedings and out of court settlements as shown in the Table 11.
Table 11: Recovered Public Assets
S/No.
Asset
Institution
recovered for
Recovered from
Estimated value
(Kshs)
1.
Mombasa Island/ Block

V/3893
Changamwe school
land
Crescent property
Development Limited
90,000,000
2.
Mombasa Island/Block
XV/699
Registrar of persons
office
Crescent property
Development Limited
27,000,000
3.
XV/702
Mvita boys school
Crescent property
Development Limited
5,000,000
4.
XV/704
Mvita boys school
Crescent property
Development Limited
8,000,000
5.

XV/ 707
Mvita clinic
Sajun Limited
17,000,000
6.

XIX/299
Uhuru gardens
Comen limited
620,000,000
7.

XXV/ 165
Municipal offices
Sajun limited
85,000,000
8.
XXV/184
Front of Education
office
Samu limited
10,000,000
9.

XXVI/907
Part of KWS office
Jusan limited
35,000,000
10.

XXVI/955
Old KWS offices
Sajun limited
10,000,000
11.

XXI/601
Ganjoni clinic
Comen limited
22,000,000
12.

XXVI/972
Kenya Ferry
services
Comen limited
80,000,000
13.

XXVI/973
Vacant plot near

Mbaraki school
Samu limited
45,000,000
23
S/No.
Asset
Institution
recovered for
Recovered from
Estimated value
(Kshs)
14.
Mainland North/1/9916
Jomo Kenyatta
public beach
Samu limited
250,000,000
15.
Mainland North/ I/
9355
Plot within Shimo la

Tewa prison
Rashid Sajjad
55,000,000
16.

XXIV/100
Jamhuri Park
Rashid Sajjad
107,000,000
17.

X/ 414
Malindi bus park
Jusan limited
95,000,000
18.
Milimani Court Land
Judiciary
Kenya RTF
400,000,000.
19.
Cash
Ministry of medical
services
Ruth Muganda
22,000,000
20.
Cash
School equipment
production
unit(SEPU)
Vulcan Lab Equipments

Limited
70,000,000
21.
Cash
National museums
Abdirazak Abdille
1,000,000
4,000,000
22.
Cash
Kemri
Davy Kiprotich Koech

(Banked thru the
law firm of Chege
Wainaina advocates on
14/05/2014)
23.
Nbi LR. Number

22008/5- KARINational Potato
Research Centre in
Tigoni Limuru.
Agricultural
Development
Corporation(lands
limited)
Renege project,
Geoffrey Kuria Muriuki
& others
10,000,000
24.
Cash
National museums
Abdirazak Abdille
250,000
Total
24
2,068,250,000
Mr. Sajjad Rashid (R) handing over 17 titles over prime public land in Mombasa to Mr. Mumo Matemu, Chairperson EACC
(L) and Mr. Halakhe Waqo, Secretary/CEO, EACC in the presence of H.E. Hassan Joho, Governor, Mombasa County
on 13th March 2014 in Mombasa. The surrendered tiles were for land which was reserved for public recreation (Uhuru Gardens
and Jomo Kenyatta Public Beach); public schools land; Bus Park; public health centers, prison, council parking and other public
purposes. The prime land will be for the use and benefit of all the residents of Mombasa.
3.3 Suits and Preservation Applications Filed
A total of 9 suits were filed for recovery of illegally acquired public assets and 3 applications
for preservation of property and obtained preservation orders to secure the assets. The
details of the suits and applications filed are presented in Table 12.
Table 12: Recovery Suits and Preservation Applications Filedw
S/No.
1.
2.
Case Number
Nairobi ELC MISCL.

116/ 2013
Nakuru MISCL. APPL.

NO. 408 / 2013
Parties
Nature of Claim
Current
Status
EACC VS- Udbi

Yeheye Haji
Application seeking
preservation of Nairobi Block
104/520 situated within
Juja Road Estate reserved
for public utility comprising
open space for recreational
use with an access to the
public.
Preservation
orders obtained
pending filing
of recovery suit
Application seeking
preservation of Nakuru
Municipality Block 4/232.
Obtained
preservation
orders.
Pending full
investigation
and filing of
recovery suit.
EACC VS- Julius

Maiyo & Others
25
S/No.
Case Number
Parties
Nature of Claim
Current
Status
3.
Nairobi HC MISCL.
42/14
EACC VSSeyani Brothers
Application seeking
preservation of LR No.
209/13559 reserved for
Meteorological Department.
Obtained
preservation
orders.
Pending full
investigation
and filing of
recovery suit.
4.
Nairobi HCCC 332/2014
EACC =V=
Justus Ogutu
Arodi
Recovery of LR No. 25433

wrongfully excised from
Ngong Road Forest.
Pending Service
of Summons
EACC VS
Njuguna
Macharia
Recovery of LR No.
209/14712 situated along
Waiyaki Way, Nairobi which
was hived off from Plot No.
209/9323 which constitutes
Government Land reserved
for the establishment of an
Orthopaedic Clinic.
Pending
hearing
5.
Nairobi HCC ELC

310/2014
6.
Mombasa ELC
218/2013
EACC vBoniface Katana

Kilaveri &
Another
Suit for recovery of KPA land

within port MI/XLVIII/145
& 146
Notice of
appeal filed by
1st Defendant
in respect
of Ruling
Challenging
EACC locus.
7.
Mombasa ELC 97/2014
EACC v- Lekyo
Tours & Another
Suit for recovery of

government house in
Bamburi
Pending
hearing
Nyeri ELC NO.

133/2013
Robert K.
Wachira VSEACC
Counterclaim of Suit
challenging the restriction
placed on parcel of land No.
Nyeri/ Municipality Block
1/1152
Pending
hearing
Nyeri ELC NO.

200/2013
EACC VSLeah Cherotich

& Justus
Wangombe
Suit filed in recovery of

Laikipia/ DaigaUmande/
Block 4 (Nyariginu)/811,
was reserved for a Water
Point
Pending
hearing
Nyeri ELC NO.

202/2013
EACC VS- Julius

N. Gatamu &
Stephen Mburu
Suit filed for recovery of

was reserved for Tree
nursery
Matter
concluded
8.
9.
10.
26
S/No.
11.
12.
Case Number
Parties
Nature of Claim
Current
Status
Nyeri ELC NO.

201/2013
EACC VSSamuel W.
Gituku & Justus
Wangombe
Suit filed for recovery of

was reserved for a
Dispensary
Pending
hearing
Nyeri ELC NO. 31/2014
EACC -VSWellington Weru

& Lawrence
Warachi
Suit for recovery of 1.

Block 4 (Nyariginu)/495
which had been reserved for
a polytechnic
Pending
hearing
3.4 Constitutional References, Judicial Review Applications

and Other Cases filed against the Commission
The Commission defended constitutional references, judicial review applications and

other civil cases filed against it. Some of the cases are highlighted Table 13.
Table 13: Constitutional References, Judicial Review Applications and Other
Cases
S/No.
Case Number
Parties
Relief Sought
Status
Michael Gitahi =vs=Eacc &

2 others
An order to restrain EACC

and other defendants from
prosecuting the Applicant.
Pending
hearing
Pending
hearing.
Constitutional References
1.
Nyeri
Constitutional
Petition No. 1
of 2014
2.
Nairobi Petition
No. 73/ 14
Prof. Njuguna Ndungu=v=

EACC, DPP & 2 others
Petition and notice of

motion application filed
under certificate of
urgency seeking to restrain
EACC from charging the
Petitioner in court.
3.
Nairobi HC.
Petition 177 of
2014
The County Government of

Meru =v= EACC
Petition seeking to bar

EACC from conducting
investigations.
Petition
dismissed.
4.
Nairobi High
Court Petition
no, 230/2014
Justus Atieri Malunda &

another=vs=Eacc & DPP
Petition seeking stay of

summons issued to the 1st
Petitioner to take plea and
answer to the charges
Pending
hearing.
5.
Nairobi
Industrial
Petition 33 of
2014
Okiya Omtata &

another=v=Kemri Board of
Management , Eacc & others
Application seeking
conservatory orders
restraining the respondent
from dismissing the 1st&
2nd respondent
Pending
hearing.
27
S/No.
Case Number
6.
Nairobi Petition
No. 409 of 2013
7.
8.
9.
10.
Parties
Relief Sought
Status
James Oswago =v= EACC
Petition seeking to bar

EACC from investigating
the petitioners actions &
impropriety at IEBC
Petition
dismissed
Nairobi Petition
495/2013
Clinix healthcare limited & 2

others=vs=EACC & DPP
Petition seeking to Bar

EACC from charging
the directors of Clinix
Healthcare on account of
loss of funds at NHIF
Petition
dismissed
Nairobi Petition
375/2013
David Kipruto Chingi &

another=vs=DPP , EACC &
another
Petition seeking to EACC

from charging the directors
of Meridian Medical Center
on account of loss of funds
at NHIF
Petition
dismissed
Nairobi Petition
539/2013
Kelvin
Mureithi=vs=Multimedia
university of kenya ,Eacc &
others
A Petiton seeking to
restrain Multimedia
University College from
recommending the
appointment of Prof Walter
Odhiambo as the vice chair
Concluded.
Okiya Omtatah Okoiti= vs=

The Speaker Nairobi City
County Assembly & others
Petition seeking to prohibit

Members of the Nairobi
City County Assembly from
introducing into the County
Assembly the motion to
censure the Executive
Committee Member, Roads,
Public Works and Transport
for Nairobi City County.
Concluded.
Orders
sought
by the
Petitioner
were spent.
EACC
ordered to
investigate
the
allegations
of bribery
with a view
of taking
appropriate
action.
The petition
was
dismissed
Nairobi Petition
No. 200 of 2014
11.
Nairobi High
Court Petition
No.66 of 2012,
Joshua Kulei vs.DPP &

Others.
Petition sought to have the

Petitioners prosecution
in Nairobi Anti-Corruption
Court Criminal Case
No.5 of 2010 declared
unconstitutional
12.
Mombasa
Miscl. Appl. no.
43/2013
Hadija Mlao Mlingo v- EACC

& DPP
Stay and/or termination of

prosecution in AC 10/2011
Matter
Dismissed
13.
Mombasa Hc.
28/2014
Bruce Joseph Bockle vCoquero Ltd & Others
Declaration that MN/

IV/491 & 492 allocated
to Respondents
unconstitutionally
Pending
hearing.
28
S/No.
Case Number
Parties
Relief Sought
Status
14.
Nyeri HC Const.
Petition No. 5
of 2013
Susan Mbogo Nganga VSEACC
Suit challenging the

institution of Nyeri CMC
Anti-Corruption Case No.
13 of 2009
Pending
hearing.
15.
Nyeri Const.
Petition No. 1 of
2014
Michael Gitahi VS- EACC,

DPP & SPM, Mukurwe-Ini
Court
Suit filed challenging

Criminal charges against
applicant at Mukurwe-ini
Pending
hearing.
Judicial Review Applications
1.
Nairobi JR Misc.
Application No.
17 of 2014
Margaret L. Kariuki =v=The

speaker county assembly of
Embu & 3 others
Judicial Review application

for orders of certiorari
quashing the decision of
the Embu County assembly
Pending
hearing.
2.
Nairobi JR. No.

87 of 2014
Horsebridge Networks
Limited =v= Central Bank of
Kenya & EACC
EACC Enjoined as
interested party in the suit
to safeguard the Interest of
central bank
Pending
hearing.
3.
Nairobi JR Misc.
Appl. No 192 of
2014
Erastus Gatebe=vs=Kenya
industrial development
research institute, AG &
others

seeking orders of certiorari
& prohibition
Pending
hearing
4.
Nairobi JR.
Misc. 255 of
2014
Midlands limited & another

=V= DPP, EACC & Another

seeking to stop
proceedings in the lower
court against the Applicant
Amos Kimunya.
Pending
hearing.
5.
Mombasa JR
Misc. Appl. No 8
of 2014
R v- KEBS & Others

ex parte car Importers
Association
Prohibition/Quashing of
decision to crush over age
vehicles
Pending
Ruling on
29.8.2014.
6.
Mombasa JR
Misc. Appl. No 8
53 of 2013
R v- DPP & EACC ex parte

Daniel Masake Kitui
Stay and/or termination of

prosecution in AC 8/2011
Pending
hearing.
1.
Nairobi Private
Prosecution
Case No 3 of
2014
Leonard Gethoi
Kamweti=vs=Mohammed
Hassan & Munir Sheikh
Ahmed
Application seeking leave

to institute a private
prosecution against
Mohamed. Abdirahiman
Hassan & Munir Sheikh
Ahmed
Pending
hearing.
2.
Nairobi
Industrial Court
Cause No. 2 of
2014
Kenya Council of
Employment& Migration
Agency=vs=National Police
service commission & 9
others
Claim to restrain the

Respondents from
interfering with matters
filed.
Pending
hearing
Other Cases
29
S/No.
Case Number
Parties
Relief Sought
Status
3.
Nairobi High
Court ELC. No.
481/2014
Garissa County=vs=The
postal corporation of Kenya
,Eacc & others
Suit seeking preservatory

orders against Garissa Mun,
Block i/95
Pending
hearing
Pending
hearing
4.
Nairobi High
Court Elc No.
49/2014
Paul Kioi Pulei & 5 others

=vs= James Ongera Bwatati
, Eacc & others
Notice of motion
application filed under
certificate of urgency for
an order of mandamus
to compel the Chief Land
Registrar and/or the
National Land Commission
to release to the Plaintiffs
their withheld certificates
of Lease.
5.
Nyeri ELC NO.

133/2013
Robert K. Wachira VSEACC
Suit challenging the

restriction placed on
parcel of land No. Nyeri/
Municipality Block 1/1152
Pending
hearing.
6.
Nyeri HC
Misc. App. No.
337/13
Peterson Murage VS- EACC,

District Land Registrar & AG
Application for orders for

removal of restriction on
Nyeri Municipality/ Block
II/ 643
Matter
concluded
3.5 Investigatory Applications
The Commission filed applications and obtained warrants to investigate 49 bank accounts
in respect of persons or associates of persons suspected of engaging in corruption,
economic crime or related offences
3.6 Recommendations for Legislative Reform
The Commission made proposals for amendments to various anti-corruption laws,

towards strengthening the anti-corruption legal framework. The proposed amendments
are intended to be implemented under the Statute Law (Miscellaneous Amendments)
Act, 2014. The laws on which proposals were made include the following;i) Ethics and Anti-Corruption Commission Act, No 22 of 2011
The proposals were towards strengthening of the Act focused on among other issues,
ensuring clarity on the mandate of the Commission as provided for under section 11.
ii) Anti-Corruption and Economic Crimes Act, No. 3 of 2003
The proposed amendments mainly focused on harmonizing its provisions with the changes
introduced by the Constitution 2010, especially to take into account the structure of the
Commission compared to the defunct KACC.
iii) Leadership and Integrity Act, 2012
This Act was enacted in 2012 to establish procedures and mechanisms for effective
administration of chapter six of the Constitution, among other objectives set out in Article
80 of the Constitution. As the principal agency mandated to ensure compliance with the
requirements under chapter six, the Commission identified several weaknesses inherent
in the Act, notably on overlap of enforcement jurisdiction.
30
iv) Public Officer Ethics Act, No.4 of 2003

The Act mainly provides for matters relating to ethics in public service. With effect from
2010, issues of ethics and integrity were vested in the EACC, hence the need to align the
Act with the constitutional provisions. The Act also establishes responsible commissions to
be responsible for various classes of public and state officers for purposes of enforcement
of the requirements under the Act, but it had not factored the public offices established
under the Constitution 2010 especially under the devolved government structure.
v) Recommendations to strengthen the Public Procurement and Disposal
System
Under section 134 of the Public Procurement and Disposal Act, 2005, the Public
Procurement Oversight Authority (PPOA) is mandated to convene consultative fora with
stakeholders in the public procurement system, with a view to making recommendations
on improvement of the public procurement and disposal system in the country. As one
of the major stakeholders in the procurement and disposal process, the Commission
participated and made recommendations on how the current public procurement and
disposal system can be improved, through amendment of the Public Procurement and
Disposal Act, the Public Procurement and Disposal Regulations among other measures.
31
Chapter 4:
Corruption Prevention
4.1 Introduction
The Commission is mandated to implement corruption prevention measures through

systems review, public education, advisory services, promotion of standards and best
practices and forging partnerships and coalitions.
4.2 Systems Review
The commission conducted 2 systems review and a follow up to establish the status of
implementation of a previous systems review.
i) Examination into Kenya Institute of Curriculum Development (KICD)
The Commission finalized an examination into the systems, policies, procedures and
practices of the KICD focusing on financial management, supply chain and human
resources at the Institute. Table 14 provides a summary of findings and recommendations
from the examination.
Table 14: Summary of Examination Findings and Recommendations
S/No.
Finding
Recommendation
1.
The Institute did not have job descriptions

for staff leading to lack of clarity of roles
and responsibilities.
Ensure that all employees are issued with

written job descriptions.
2.
The institute did not have a scheme of

service for its various cadres of staff
leading to unspecified career progression
on the job.
Ensure that an appropriate scheme of service

for staff is operational.
3.
The Institute did not have structured

procedure for recruitment of casual
employees leading to contravention of
the employment Act which provides for
continuous employment of casuals for a
period of 3 months only.
Develop and incorporate casuals recruitment

procedures into the HR policies and
procedures of the Institute.
4.
The institute did not have proper policy

guidelines on engagement of interns
leading to irregularities in the attachment
process.
Develop and implement a written policy on

engagement of interns.
5.
The Institute uses draft financial

management manual which have not been
approved by the Council.
The draft financial management manual

should be approved by the Council and staff
sensitized on it provisions
6.
The Institute budgetary control procedures

were not adhered to leading to over
expenditure.
Ensure budget control procedures at adhered

to.
32
S/No.
Finding
Recommendation
7.
The Institute did not have a consolidated

fixed assets register.
Develop and maintain a consolidated fixed

assets register.
8.
The Institutes supply chain management

manual was inconsistent with the PPDA
2005 and Regulations 2006.
Review the Procurement and Disposal

Procedures manual to ensure that it is
consistent with the PPDA, PPD Regulations
and other General manuals and guidelines
issued from time to time by the PPOA.
i) Examination of National Cereals and Produce Board (NCPB)

The Commission finalized an examination into the systems, policies and procedures of
work and submitted the Report to the Board. In addition, a follow up was undertaken to
review the extent of implementation of the recommendations.
ii) Assessment of implementation of Systems Review Recommendations
to Nairobi Water and Sewerage Company
The Commission assessed progress of implementation of the recommendations provided
to the Nairobi Water and Sewerage Company following an examination of systems,
policies, procedures and practices carried out at the Company in the period September
to December 2010. The progress made include:
a) Proposals to the Commission on Implementation of the Constitution (CIC) on
areas of strengthening the Water bill, 2013;
b) Piloting an automated system of capturing coordinates for new meters by use
of smart phones to address the historical problem of data cleaning, accounting
and revenue collection;
c) Appointment of the Company Board in March 2011 thus enhancing corporate
governance;
d) Service Provision Agreement with Athi Water Services Board (AWSB) in place; and
e) Enhanced human resources management - a policy on movement of staff
personal files to the next station upon transfer was introduced.
4.3 Advisory Services
The Commission provided advisories to public institutions under the performance

contracting framework, county governments, corruption risk assessment and on
Government Payment System (G-pay) and Integrated Financial Management Information
System (IFMIS) to the National Treasury.
i) Corruption Prevention Advisory programme for Counties
The Commission launched a corruption prevention advisory programme for County
Governments to support the establishment of laws, policies, systems and procedures
of work that are intolerant to corrupt practices. A total 14 counties were covered in the
advisory programme as indicated in Table 15. The advisories focused on:
a)
b)

c)

Mapping out corruption prone areas in operational systems and procedures;

Developing strategies and measures to address corruption and unethical
practices in operational systems and procedures; and
Developing and enforcing codes of conduct, anti-corruption policy and anti-
corruption action plan.
33
At the end of advisory programme, respective county governments signed an action

plan for implementation of anti-corruption measures. By the end of the reporting year,
Uasin Gishu and Bungoma counties had developed and submitted their respective AntiCorruption Policies to the Commission for review.
Table 15: Counties covered in Advisory Programme
S/No.
County
Date of Advisory
1.
Bungoma
27th 28th January, 2014
2.
Uasin Gishu
30th 31st January, 2014
3.
Meru
3rd 4th February, 2014
4.
Narok
6th 7th February, 2014
5.
Kakamega
10th 11th February 2014
6.
Nairobi
12th - 13th February, 2014
7.
Machakos
3rd 4th March, 2014
8.
Taita Taveta
13th 14th March, 2014
9.
Kiambu
20th 21st March, 2014
10.
Nyandarua
26th 27th March, 2014
11.
Elgeyo Marakwet
16th 17th April, 2014
12.
13.
14.
Lamu
Nyamira
West Pokot
22nd - 23rd April, 2014

21st 22nd May, 2014
11th 12th June, 2014
The Advisory noted a number of challenges faced by county governments in implementing

their programmes and mainstreaming anti-corruption, ethics and integrity. These include:
a) Threats of impeachment of the executive by Members of County Assembly (MCAs);
b) Lack of county specific anti-corruption legislation, unethical practices occasioned
by inheriting staff of the former local authorities;
c) Lack of county assets register;
d) The issue of ghost workers and ghost projects; and
e) Lack of capacity for planning, budgeting, implementation and monitoring and
evaluation of programmes and activities.
34
The EACC Chairperson, Mr. Mumo Matemu, MBS with Governor of Uasin Gishu County, Mr. Jackson Mandago
during the Uasin Gishu County Prevention Advisory programme held at the County from 30th 31st January 2014.
Commissioner Professor Jane Onsongo (standing) with Machakos County Deputy Governor Mr. Bernard Kiala
(seated) during the Machakos County Advisory programme held at Machakos Garden Hotel, Machakos from 3rd
4th March 2014.
35
ii) G-Pay and Integrated Financial Management System (IFMIS)

The Commission provided an advisory to the National Treasury on G-Pay and IFMIS with
the aim to enhance public financial management as it relates to the payment systems
being used by the National Treasury in the disbursement of funds to public institutions.
During the advisory, the following issues and malpractices were identified for action:
a) Irregular withdrawals through the G-Pay system facilitated by weak internal
control systems and lack of effective supervision; and
b) Complexity of IFMIS and limited understating of the system by many
users across the public service. Only a few officials of the National
Treasury understood the system well and were able to use it effectively;
iii) Corruption Risk Assessment (CRAs)
The Commission undertook 84 CRAs in various institutions focusing on the provisions
of the corruption eradication indicator for the 10th Cycle of the performance contracting
framework in the public service. The CRAs identified and mapped out corruption prone
areas which informed the development of strategies to mitigate the identified risks. In
addition, the Commission developed CRA guidelines to support institutions undertake
CRAs on their own.
KenTrade management team led by the CEO Alex Kabuga (seated middle) with EACC Prevention team led by
Susan Kinyeki (seated left) at a Corruption Risk Assessment Advisory for KenTrade held at Utalii Hotel, Nairobi
from 26th -27th November 2013.
iv) Advisory to the Mombasa Law Courts
An advisory was provided to the Mombasa Law Courts on addressing corruption and
unethical practices within its operations. The advisory also entailed an assessment of the
courts systems to identify corruption prone areas. A report containing recommendations
on addressing corrupt practices at the Mombasa Law Courts was developed and submitted
to the Judiciary for implementation.
36
v) Monitoring of the Corruption Eradication Indicator in the Performance

Contracts of Public Institutions
A total of 258 Public Institutions submitted their Corruption Eradication Indicator returns
to the Commission for review, analysis and feedback. Majority of the Institutions were
advised on how to develop various anti-corruption and governance instruments and
enhancing implementation of the actions under the indicator. In addition, the Commission
participated in the development of the 11th cycle guidelines for the implementation of the
anti-corruption indicator for the financial year 2014/2015.
4.4 Education, Training and Public Awareness
Under public education, the Commission carried out: county based outreach clinics;
training of public officers within the framework of performance contracting; development
and dissemination of IEC materials; mainstreaming anti-corruption content in formal
education system; promotion of integrity clubs in schools; and training of various interest
groups in the education sector and civil society among others.
i) County Anti-Corruption Outreach Programme
The Commission undertook public outreach programme in Lamu, Nyamira and West Pokot
Counties. The purpose of this programme was to educate the public on the dangers of
corruption and enlist their support in the fight against corruption and unethical practice.
Through this programme, the Commission reached over 600,000 people directly and
through media. In addition, 55 corruption reports were received and 100,000 IEC
materials disseminated. The outreach programme culminated in a public baraza where
the county governments committed to and signed an Anti-Corruption Action Plan for
implementation.
Commissioner Prof. Jane Onsongo and H.E. Simon Kachapin Governor West Pokot County flagging off the procession
to mark the Anti-Corruption Week in West Pokot County and EACC officers sensitizing the public at one of the
stopovers in West Pokot
37
ii) Education Sector Outreach and Training Programme

The Commission sensitized 72,078 pupils and students from 101 primary and secondary
schools in 9 counties to promote formation of Integrity Clubs and value-based character
in schools. Table 16 provides a total number of students and schools covered in the
programme per county.
Table 16: Sensitization Programs Undertaken in Schools by County
County
Uasin-Gishu
Kericho
Busia
Bungoma
Nyamira
West Pokot
Machakos
Embu
Garissa
Total
No. of Schools
13
14
13
11
9
10
5
4
22
101
No. of students sensitized

7,300
9,596
11,596
10,500
4,385
6,824
2,708
2,200
16,969
72,078
In addition, the Commission trained 451 managers in the education sector. This comprised
County Directors of Education (CDE) and heads of schools as shown in Table 17.
Table 17: Sensitization of Education Managers by Sub-Sector
Category
Primary Schools
Target group
School Heads
No. trained
172
Secondary Schools
School Heads
132
CDE
CDE
45
Primary Schools
KEPSHA
102
Total
451
EACC Officers sensitizing students from St. Anne Kisoko Girls School in Busia County and pupils from Bungoma
DEB Primary School in Bungoma County.
38
iii) Training of University Students and their Leaders

Through this programme, over 300 students and staff from the University of Nairobi
were trained on corruption prevention and anti-corruption legal framework; 250 student
leaders from 10 private and public universities trained on ethical leadership; 76 students
from Garissa University sensitized on ethics and integrity; and approximately 1,000
students and 50 staff from Rongo University trained on anti-corruption and ethics.

iv) Training of Integrity Club Leaders and Hosting Integrity Club Forums
The Commission trained 45 Integrity Club Patrons from Kericho, Uasin Gishu, Busia and
Bungoma Counties. Similarly, the Commission hosted two regional forums for Integrity
Club Leaders in Machakos and Embu Counties involving two hundred and four (204)
leaders during the reporting period.
Integrity Club Patrons posing for a photo and an EACC Officer making a presentation during the Integrity Club
Patrons training held in Kisumu.
v) Formal and Non-Formal Curriculum Initiatives
The Commission co-sponsored and participated the Curriculum Review Conference from
28th 31st January 2014. The participation was geared towards lobbying stakeholders in
the curriculum review process to consider mainstreaming anti-corruption content into the
formal education system.
In addition, the Commission sponsored the anti-corruption category of 2013 Drama
Festival with the aim of propagating anti-corruption messages and content through drama.
Towards this end, 250 adjudicators were trained. At the festival, 7,500 IEC materials were
disseminated, over 1000 members of the public and 422 school representatives were
sensitized during the festival held on 16th-17th April, 2014 in Nyeri.
39
Some of the pupils performing during the 2014 Kenya National Drama Festivals which was held in Nyeri County.
vi) Training of Community Based Anti-Corruption Monitors
A total of 425 members of Ecumenical Centre for Justice and Peace (ECJP) from 17 counties
were trained as part of the Community Based Anti-Corruption Monitors programme. The
purpose is to empower them with skills to participate in the fight against corruption and
unethical practices at the County levels.
vii) Training of Integrity Assurance Officers and CPCs
The Commission trained 90 Integrity Assurance Officers (IAOs) and 499 members of
Corruption Prevention Committees (CPCs) as indicated in Table 18 and 19 respectively.
The objective of the two trainings was to build capacity of public institutions to prevent
corruption and enhance service delivery as well as organizational performance. The
IAOs were drawn from 32 public institutions at national and county levels while the CPC
members were drawn from 5 national government ministries, 13 state corporations, 4
tertiary institutions and 1 independent commission.
Table 18: Training of Integrity Assurance Officers by Institution
S/No.
Institution
No. of participants
1.
National Authority for Campaign against Alcohol and Drug Abuse
2.
Jomo Kenyatta Foundation
3.
Brand Kenya
4.
Competition Authority of Kenya
5.
Postal corporation
6.
National Oil Corporation
7.
TARDA
8.
Kenya School of Government
9.
Biosafety of Kenya
10.
Egerton University
11.
Privatization Commission
12.
Bukura College
13.
Kenya Forest Research Institute
14.
The County Government of Turkana
15.
Kenya National Highways Authority
16.
Kenya Literature Bureau
40
S/No.
Institution
No. of participants
17.
Ministry of Interior and National Coordination
18.
Kenya Medical Research Institute
19.
Kenya Water Institute
20.
Ministry of Transport
11
21.
Agricultural Development Corporation
22.
Anti-Counterfeit Agency
23.
Embu University
24.
Karatina University
25.
Kenya Vision 2030
26.
Kenya Wine Agency
27.
KETRACO
28.
Kenya National Bureau of Standards
29.
30.
Rongo University
31.
NACOSTI
32.
Women Enterprise Fund
Total
90
Table 19: Number of Corruption Prevention Committee (CPC) Training

S/No.
Public Institution
Ministries
No. of Officers Trained
1.
Ministry of Agriculture, Fisheries and Livestock Development
38
2.
Ministry of Education, Science and Technology
40
3.
Ministry of Industrialization
13
4.
Ministry of Devolution
26
5.
Ministry of Defence
23
Total
140
State Corporations
1,
Kenya Tea Research Foundation
20
2.
National Housing Corporation
15
3.
KETRACO
15
4.
KEPHIS
35
5.
15
6.
12
7.
National AIDS Control Council
15
8.
Kenya Pipeline Company Ltd
20
9.
Capital Markets Authority
10
10.
11.
National Industrial Training Authority

Geothermal Development Corporation
33
16
41
S/No.
Public Institution
No. of Officers Trained
12.
18
13.
Brand Kenya Board
Total
Tertiary institutions
1.
Michuki Technical Institute
2.
Meru Teachers Training College
3.
Machakos Technical Institute for the Blind
4.
Meru University of Science and Technology
14
238
Total
106
25
28
18
35
Independent Commissions
1.
Salaries and Remuneration Commission
15
Overall Total
499
viii) Development and Dissemination of Information, Education and

Communication (IEC) Materials
Over 90,000 IEC materials made up of simplified anti-corruption laws, anti-corruption
religious materials, posters, polo shirts and banners were produced. Out of these,
15,000 IEC materials were disseminated. The Commission also launched the Manual on
the Establishment of Integrity Clubs in Institutions of Learning on 6th September, 2013 at the Kenya
Institute of Curriculum Development. The manual guides schools on setting-up and
running of integrity clubs. The overall goal is to inculcate ethics and integrity and catalyze
character development among learners in schools. Table 20 provides the number of IEC
materials produced by type.
Table 20: IEC Materials Developed
IEC Material Type
No. Developed
Simplified ACECA
10,000
Simplified EACC Act
10,000
Simplified POEA
7,000
Simplified Leadership and Integrity Act
10,000
Anti-Corruption Study Guides
10,000
Ten Assorted Posters
50,000
Polo-Shirts
1000
T-Shirts
700
Banners
42
EACC Officers disseminating assorted IEC materials during the West Pokot public outreach and Thogoto TTC
students display some of the IEC materials disseminated to them.
ix) Sensitization and Awareness
The Commission sensitized and created awareness to 9,490 people drawn from the private,
public, faiths and civic society sectors as shown in Table 21. The programme equipped
participants with knowledge on anti-corruption, ethics, integrity and good governance
issues. The groups covered included the Federation of Women Lawyers (FIDA), Seventh
Day Adventist Church (SDA) elders, Anglican Youth leaders and Clergy.
Table 21: General Sensitization on Issues of Anti-Corruption by Sector
Type of institution
No. of institutions
No. of participants
Public
67
6, 340
Private
310
Civil society and faiths
2,840
Total
70
9,490
The Commission convened a one day Consultative Workshop with the Matatu Owners
Association (MOA) and stakeholders of the transport sector on 26th June, 2014 at the
Kenyatta Convention Center (KICC). They included the Traffic Police Department and
the National Transport Safety Authority. The workshop discussed strategies to address
corruption and unethical practices in the sector.
In collaboration with the United Nations Development Programme (UNDP) and UN Office
on Drugs and Crime under the United Nations Development Assistance Framework
(UNDAF), the Commission trained County Executive Committee members from Migori,
Homa Bay, Kisumu, Siaya, Vihiga, Kakamega, Busia, Bungoma, Trans Nzoia and Pokot,
Kisii, Nyamira, Bomet, Kericho, Nakuru, Nyandarua, Baringo, Nandi, Nairobi, Machakos,
Kajiado, Kiambu, Kitui, Embu, Muranga Counties.
43
Chapter 5:
Ethics and Leadership
5.1 Introduction
The Commission is mandated to enforce the provisions of Chapter Six of the Constitution
on leadership and integrity. To facilitate these, the Leadership and Integrity Act 2012
was enacted to provide mechanisms for enforcement of Chapter Six of the Constitution.
In addition, the Commission is mandated to develop and promote standards and best
practices in integrity and anti-corruption and develop and enforce codes of conduct.
5.2 Ethics and Leadership Development
The Ethics and leadership programmes encompassed development of policies and

regulations to operationalize the Leadership and Integrity Act 2012, development and
issuance of leadership and integrity registers, development and review of leadership and
integrity codes and codes of conduct and ethics for state and public officers, advisories and
notices, promotion of ethical standards and integrity and development and dissemination
of LIA awareness information.
i) Development of policies and regulations
The Commission developed draft Leadership and Integrity Regulations and submitted to
Parliament for consideration for approval.
Consultations with CIC on the Draft Leadership and Integrity Regulations 2014 held on 6 March 2014
44
The Highlights of the draft Regulations include the following:

a) Prescribe the limitations on the types of gifts that a State Officer can receive
(Section 14, LIA)
b) Prescribe for the maximum value of gifts. (section 14)
c) Prescribe mechanisms for the receipt, collection, storage & disposal (Section 14)
d) Provide a mechanism & procedure for the opening, maintaining & publicizing of
registers of conflict of interest (Section 16)
e) Prescribe the grounds & conditions for opening, registering, maintaining,
controlling & closing bank accounts outside Kenya (Section 19)
f) Provide for the regulation on lodging of complaints, investigation & disciplinary
processes and mechanisms on the enforcement of the Code under (Section 42)
ii) Development of Leadership and Integrity registers
To enable enforcement of LIA provisions, the following 12 registers were developed as
specified in the Regulations;
a) Gift declaration form.
b) Register of gifts received.
c) Register of gifts given.
d) Declaration of Conflict of Interest form.
e) Register of Conflict of interest.
f) Declaration of conflict of interest by members of Senate, National and County
Assemblies form.
g) Register of conflict of interest for Senate, National and County Assemblies.
h) Application form for inspection of the Register of Conflict of Interest
i) Application form for approval to open and operate a Bank account outside Kenya
j) Authority to verify Bank account details form.
k) Commitment to the General Leadership and Integrity Code form.
l) Commitment to the Specific Leadership and Integrity Code form.
iii) Review of Specific Leadership and Integrity Codes
The Commission reviewed 2 specific leadership and integrity codes for state officers in
the Ministry of Devolution and Planning and the Registrar of Political Parties. In addition,
the Commission also reviewed its own code to be in line with the provisions of LIA. In
addition, the Commission reviewed codes of conduct for 25 public institutions within the
framework of performance contracting in the public service. Table 22 provides a list of
public institutions advised.
Table 22: Public Institutions support in the development and review of Codes
S/No.
Public Entities
1.
KICC
2.
3.
4.
East Africa Portland Company Ltd
5.
Tea Board of Kenya
6.
NGO Council
7.
Women Enterprise Fund- Advisory board
8.
IDB Capital Limited
9.
KETRACO
10.
Ministry of Labour & Social Services
11.
Ministry of Agriculture Livestock and Fisheries

45
S/No.
Public Entities
12.
Tea Research Foundation of Kenya
13.
Geothermal Development Company
14.
Numerical Machining Complex Limited
15.
Mandera County Government
16.
Nairobi Technical Training Institute
17.
Ministry of Energy and Petroleum
18.
Ministry of Transport and Infrastructure
19.
Kitui Teachers Training College
20.
Teachers Service Commission
21.
Kenya Maritime Authority
22.
23.
Ministry of Education Science and Technology
24.
Ministry of Education Science and Technology
25.
Kenya Airports Authority
vi) Notices on Implementation of LIA

The Commission issued notices to various Commissions, independent offices and county
government on their responsibility to implement the provisions of the leadership and
integrity act 2012 with specific focus on the following areas:
(i) Opening and operating bank accounts outside Kenya for state and public
officers to the following public entities:
Public officers in Kenyas foreign mission through the Principal Secretary,
Ministry of Foreign Affairs; and
All state and public officers through the Chief of Staff and Head of Public
Service (other than the Diplomatic staff)
Forty seven (47) County Governments
Commissions and two independent offices
(ii) Aligning codes of conduct with provisions of part II of LIA 2012.
(iii) Adherence to the provisions of the Public Finance Management Act 2012
(iv) Provisions of Section 26 of LIA on gainful employment.
(v) The legal requirement for declaration of income, assets and liabilities for public
officers.
In addition, the Commission provided technical support to 7 public institutions and 3
private institutions on the development and management of conflict of interests and gift
registers. The Commission also processed 6 applications for operating bank accounts
outside Kenya. The Commission also provided technical support for development of
employee suitability assessment tools for the Kenya Revenue Authority and the NGO
Council.
46
5.3 Ethics Monitoring and Compliance
Ethics monitoring and compliance deals with enforcement of ethical standards set out
in the leadership and integrity Act 2012 as well as processing request for background
checks on integrity for persons seeking appointive positions in the public service.
i) Reports on Violation of Codes of Ethics
A total of 75 reports on violation of codes of ethics were received. Of these, 10 cautions
were issued to public entities in regard to various ethical breaches and misconduct, 12
were referred to other public entities for action, 5 are undergoing investigations, 3 were
recommended for no further action while the rest are pending.
ii) Background Checks
The Commission received and processed requests for background checks on integrity for
applicants seeking various appointive positions in the public service. The requests were
from: the Public Service Commission; Public Procurement Oversight Authority; Various
County Governments; the National Police Service Commission; the Judicial Service
Commission; the Office of the Director of Public Prosecutions and the Teachers Service
Commission.
47
Chapter 6:
Partnerships, Networks and Coalitions Against
Corruption
6.1 Introduction
The Commission is mandated to forge partnerships, networks and coalitions in the fight
against corruption and promotion of ethics and integrity. The Commission forged strategic
partnerships with a number of institutions as stated below.
6.2 Kenya Leadership and Integrity Forum
The Commission supported the Kenya Leadership and Integrity Forum (KLIF) in the
implementation of National Anti-Corruption Plan (NACP). The Key activities included:
i) Development of the Kenya Integrity Plan
The process of developing the Kenya Integrity Plan (KIP) which is a successor to the
National Anti-Corruption Plan (NACP) commenced during the year under review.
KLIF stakeholders pay a courtesy call to the West Pokot Governor
48
Participants at the County Leadership and Integrity Forum in West Pokot County
ii) Commemoration of the International Anti-Corruption Day
The International Anti-Corruption Day was commemorated on 9th December 2013 in
six counties with the main event being held Nakuru County. The other counties were
Mombasa, Kisumu, Nyeri, Garrisa and Uasin Gishu. The twin themes of the day were
Integrity my responsibility and Uadilifu ni maendeleo. The main event Nakuru attracted over 3,500
participants while the other venues attracted almost a similar number of participants.
During the commemoration and the build-up activities towards the main event, the
Commission was able to raise public awareness and understanding of corruption; unite
efforts of stakeholders as government, business, civil society and the public in the fight
against corruption; and voice out the message of NO TO CORRUPTION in all the spheres
of the Country. Key activities marking the week included:
i) Live television interviews featuringEACCmanagement and other
stakeholders.On 3rd December, the Kenya Television Network (KTN)breakfast show
featured theChief Executive officer and Secretary of EACC; on 4th December
Nation Television (NTV) Morning Show featured the Ag. Director of the National
Anti-Corruption Campaign Steering Committee (NACCSC); on 6th December Citizen
Breakfast Show featured the Chairman EACC, Chief Executive Officer Transparency
International Kenya Chapter; and on 7th December Citizen Television evening
weekend News featured the Nakuru County Governor on the Governors Seat section.
ii) Radio interviews conducted in various media houses. On the 6th December Citizen
Kiswahili Radio featured Commissioner Professor Onsongo of EACC, Bakari Chemaswet
of SUPKEM and a representative of Transparency International. On the same day,
Radio Amani Nakuru and Radio Victoria in Kisumu hosted interactive sessions with
EACC staff. In Nyeri, Rware FM conducted a radio talk on the morning of 9th December
where the importance of the event stressed and people were invited to attend.
49
iii) An outreach programme was carried out in Nakuru from 3rd to 8th December.
During the outreach the EACC Mobile office received about 22 corruption
reports and complaints and members of the public took the opportunity to
submit Vetting and Clearance Forms. These forms were downloaded from
the Commission Website, duly filled and stamped as per the procedure.
iv) A newspaper supplement featuring EACC, KLIF, TI, Attorney Generals and Department of
Justice, Kenya Private Sector Alliance, NACCSC and the message from the United Nations
Secretary General was placed in the Nation and East African Standard Newspapers.
The Agencies urged Kenyans to take a collective stand against corruption and to foster
a culture of integrity and good governance in order to accelerate economic growth.
Nakuru County Governor Kinuthia Mbugua Mr. Mumo Matemu, MBS, Chairperson of the
addressing the participants
Ethics and Anti-Corruption Commission addressing
participants
6.3 Other forms of Partnerships

i) Memoranda of Understanding (MOUs)
The Commission entered into Memorandum of Understanding with 3 institutions as
indicated in Table 23. The MOUs are aimed at enhancing collaborations and partnership
on combating and preventing corruption in specific institutions and sectors.
Table 23: Memorandum of Understanding between EACC and Other Institutions
S/No.
Institution(s)
Date signed
1.
Kenya Revenue Authority (KRA)
01/11/ 2013
2.
The Association of Professional Societies in East Africa

(APSEA)
19/11/2013
3.
Nairobi City County Government
16/12/2013
ii) Partnerships
The Commission partnered with various public and private institutions in the fight against
corruption. Table 24 highlights the partnership forged.
50
Table 24: Partnerships

Nature of
partnership
Mainstreaming integrity
in national Strategy
for Reducing Emission
from Deforestation
and Forest degradation
(REDD+)
Stakeholder
Ministry of
Environment, Water &
Natural Resources
Implementation
status
Output
Publishing of A
Corruption Risk
Assessment report for
REDD+
Harmonization of
corruption reporting
mechanisms, formation
of a taskforce on
grievance and redress,
and development of a
code of ethics for REDD+
implementers.

Ministry of Devolution
and Planning
Developed 2014/2015
11th Cycle guidelines on
corruption eradication
indicator
Other Public
Institutions
Facilitated the
development of
anticorruption policies
in: Ministry of
Agriculture, Livestock
and Fisheries; Kenya
Ports Authority;
Numerical Machine
Complex; Ministry
of Energy and
Petroleum; Ministry
of Industrialization
and Enterprise
Development; and
KenGen
Enhancement of
integrity and ethics
in public sector
institutions
Guidelines
development
Feedback
reports provided
Institutions
assessed and
advised
Anti-corruption polices
developedw
51
Chapter 7:
Institutional Capacity Building
7.1 Introduction
The Commission continued to efficiently utilize its financial human and physical resources
in implementing its mandate. This section outlines activities undertaken in the reporting
period.
7.2 Financial Resources
During the reporting period, the Commission was allocated a total of Kenya Shillings 1,099,066,500
in the Printed Estimates to finance its operations. The allocation comprised Kenya Shillings
1,045,066,500 and Kenya Shillings 54,000,000, which were factored in the Budget Estimates
as Recurrent and Development Votes respectively. These allocations were later increased in the
Supplementary Estimates to Kenya Shillings 1,245,066,500 and factored in the Recurrent Vote.
The Commission had no allocation under the Development Vote in the Supplementary Estimates.
a)
GOK Recurrent Funds
All financial resources spent by the Commission over the reporting period were funded
by the Government of Kenya. From an allocation of Kenya Shillings 1,245,066,500 in the
Supplementary Estimates for 2013/14 Financial Year, the Commission spent a total of
Kenya Shillings 1,164,960,661 hence leaving a balance of Kenya Shillings 80,105,839.
b)
GOK Development Funds
The Commission had no allocation under the Development Vote in the Supplementary
Estimates for 2013/14 Financial Year.
c)
Donor Funds
The Commission was not able to secure Donor funding in 2013/14 Financial Year.
7.3 Human Resource Management
The Commission enhanced its human resource capacity through recruitment, training,
and management of staff welfare.
7.3.1 Staff Complement
At the beginning of the reporting year, the Commission had a staff complement of 236.
During the year 59 new members of staff joined the Commission while 34 exited. Staff
complement stood at 264 at the end of the year.
7.3.2 Job Evaluation Report
The Commission through the Ministry of Devolution and Planning under the Department
of Public Service undertook a job evaluation exercise. The Job Evaluation Report was
adopted on 3rd September, 2013. The Report comprised a new organization structure,
human resource manual and career progression guidelines.
7.3.3 Skills and Competency Development
The Commission trained staff locally and abroad in investigation, prevention, good
governance, financial management and other competencies as shown in Tables 25 and
26 respectively.
52
Table 25: Staff Training and Development Programs

S/No.
Broad Areas of Training/Development
No. of
Participants
1.
Fraud Investigation and Prevention
31
2.
Corporate Governance
3.
Trial Advocacy in Complex Crimes (ToT)
4.
Criminal Justice Response to Corruption
5.
Whistle Blower Protection
6.
Business Process Reengineering
7.
Continuing Professional Development/Continuing Legal Education
42
8.
General Management and Leadership
50
9,
Meetings, Workshops and Seminars
54
10.
Retirement Preparation
11.
Foreign Study Visits/Benchmarking Tours
Total
215
Table 26: Staff Training Abroad

Name
Date
Venue
Training/Conferences/
Seminars/Meetings
Abdi Mohamud
23rd -29th
November 2013
Panama City,
Panama
5th Session of the Conference of Parties

to the United Nations Convention Against
Corruption
Abraham Kemboi
6th October
-13th November
2013
Tokyo, Japan
Group Training Course Criminal Justice

Response to Corruption
Alfred Mwachugha
18th -22nd
November 2013
Bujumbura,
Burundi
Training in Whistle Blower Protection

(EAAACA)
Antonina K. Bor
1st 9th July,

2013
Bangkok,
Thailand
4th Global Focal Pont Conference on

Asset Recovery and StAR Training
Workshop
Antonina K. Bor
4th -7th
November 2013
Kigali, Rwanda
7th EAAACA Executive Meeting and

Annual General Meeting
Antonina K. Bor
7th 11th April,

2014
Dubai
Fourth Edition of the Annual Investment

(AIM)
Antonina K. Bor
24th -25th June

2014
Hague,
Netherlands
Meeting of the Regional Asset Recovery

Inter-Agency Network Secretariats
Antonina K. Bor
26th - 28th
January 2014
Laussane,
Switzerland
8th Lausanne Practioners Workshop

on return of Illicit Asset of Politically
exposed persons.
Ben Murei
6th -12th
October 2014
Abuja, Nigeria
6th Interpol Global Programe On AntiCorruption, Financial Crimes and Asset

Recovery
53
Name
Date
Venue
Seminars/Meetings
Comm. Irene Keino

Vice Chairperson
1st 9th July,

2013
Bangkok,
Thailand

Workshop
Comm. Irene Keino

Vice Chairperson
18th-21st
February 2014
Johannesburg,
South Africa
The Audit Committees Training
Comm. Irene Keino

Vice Chairperson
22nd - 29th June

2014
USA
Study visit
Comm. Mumo
MatemuChairperson
4th -7th
November 2013
Kigali, Rwanda

Comm. Mumo
MatemuChairperson
24th-26th
February
Kampala,
Uganda
East Africa Association of Anti-Corruption

Authorities(EAAACA) Extra-Ordinary
Meeting
Comm. Mumo
MatemuChairperson
7th 11th April,

2014
Dubai
Fourth Edition of the Annual Investment

(AIM)
Comm. Mumo
MatemuChairperson
16th -17th June

2014
Arusha, Tanzania
Meeting of the EAC Forum of Anticorruption Agency
Comm. Mumo
MatemuChairperson
29th September
-6th October 201
Romania
Study Visit
Comm. Prof. Jane

Onsongo
8th 11th April

2014
Johannesburg,
South Africa
Best Practices and Administration

Committees
Comm. Prof. Jane

Onsongo
29th September
-6th October 201
Romania
Study Visit
David Kaboro
16th 20th
December 2013
Dar es Salaam,
Tanzania
Meeting of Committee for Harmonization

of Anti-Corruption Laws in Uganda
David Kaboro
28th October -1st

November 2013
Dar-es-salaam,
Tanzania
Meeting on Harmonisation of Laws

Governing the Ant-Corruption Authorities.
David Kaboro
26th 21st May

2014
Accra, Ghana
4th Commonwealth Regional Conference
David Too
16th -17th June

2014
Arusha, Tanzania
David Too
29th September
-6th October 201
Romania
Study Visit
Daniel K. Wamweru
19th 23rd
August 2013
Gaborone,
Botswana
Tools and Instruments for Measurement

and Monitoring Corruption and Anticorruption
Eric Ngumbi
16th -17th June

2014
Arusha, Tanzania
54
Name
Date
Venue
Seminars/Meetings
Eva Thingini
6th October
-13th November
2013
Tokyo, Japan

Godfrey Oyugi
28th October -1st

November 2013
Dar-es-salaam,
Tanzania
Meeting on Harmonisation of Laws

Governing the Ant-Corruption Authorities.
Godrey Oyugi
16th 20th
December 2013
Dar es Salaam,
Tanzania
Meeting of Committee for Harmonization

of Anti-Corruption Laws in Uganda
Halakhe Waqo
Sec/CEO
10th -14th
December 2013
South Africa/
Botswana
1st and 2nd Module of Senior Leadership

and Management
Halakhe Waqo
Sec/CEO
26th 21st May

2014
Accra, Ghana
4th Commonwealth Regional Conference
Halakhe Waqo
Sec/CEO
29th September
-6th October
2013
Romania
Study Visit
Ignatius Wekesa
18th -22nd
November 2013
Bujumbura,
Burundi

(EAAACA)
Jacinta Njue
18th -22nd
November 2013
Bujumbura,
Burundi

(EAAACA)
Jackson K. Mue
3rd 5th Dec

2013
Kuala Lumpur,
Malaysia
Conference on Tele-Strategies for

proactive investigations
Judith Shamalla
2nd -6th June

2014
Vienna, Austria
5th Session of the Meeting of the

implementation Review Group of the UN
Convention against Corruption.
Kipsang Sambai
4th -7th
November 2013
Kigali, Rwanda

Lucy Kinuthia
29th September
-6th October
2013
Romania
Study Visit
Martin M. Ngati
26th -28th
August, 2013
Vienna, Austria
Open Ended Inter-Governmental Working

Group on Prevention of Corruption
Martin Obuo
6th October
-13th November
2013
Tokyo, Japan

Meshack Aluda
19th 23rd
August 2013
Gaborone,
Botswana

Michael Mubea
Deputy Secretary/
CEO
1st 9th July,

2013
Bangkok,
Thailand

Workshop
Michael Mubea
Deputy Secretary/
CEO
14th -15th May

2014
Rome, Italy
Meeting on Identification, Location and

Seizure of Assets
55
Name
Date
Venue
Seminars/Meetings
Michael Mubea
Deputy Secretary/
CEO
22nd - 29th June

2014
USA
Study visit
Michael Nteere
28th October20th November

2013
Beijing, China

(Reconstructing Government Procedures)
For Kenyan Civil Servants
Mutembe Nyagah
18th -22nd
November 2013
Bujumbura,
Burundi

(EAAACA)
Patrick Owiny
28th October20th November

2013
Beijing, China

(Reconstructing Government Procedures)
For Kenyan Civil Servants
Purity Gitonga
18th -22nd
November 2013
Kigali, Rwanda
African Association For Public

Administration And Management
(AAPAM) 35th Roundtable Conference
Robert Bett
18th-21st
February 2014
Johannesburg,
South Africa
The Audit Committees Training
Rodgers Akaki
3rd 5th Dec

2013
Kuala Lumpur,
Malaysia
Conference on Tele-Strategies for

proactive investigations
Sophia Muturi
20th -22nd
November 2013
Kampala,
Uganda
6th East African Procurement Forum
Susan Kinyeki
11th -18th
September2013
Civil Service
College,
Singapore
Singapore Anti-Corruption StrategySponsored by Government of Singapore
Tom Amoro
18th -22nd
November 2013
Bujumbura,
Burundi

(EAAACA)
Vincent O. Okongo
19th 23rd
August 2013
Gaborone,
Botswana

Wilfred Gituma
MMutiga
26th - 28th
January 2014
Laussane,
Switzerland
8th Lausanne Practitioners Workshop

on return of Illicit Asset of Politically
exposed persons.
7.4 Information Communication Technology
The Commission developed an ICT strategy to guide its automation programme. The
strategy focuses on organizational efficiency, ICT infrastructure, information management
systems, network communication services, ICT governance framework and business
continuity/disaster management. In addition, a policy on Acquisition, allocation, use and
Disposal of Personal Digital Assistants (PDA) was developed and operationalized.
The workstation environment was modernized through acquisition of high capacity
servers, 190 new computers and peripherals, upgrade on the database management
systems to cope with growing data and information needs and extended its network to
all the commission offices and the Huduma Centre, GPO Nairobi.
56
The commission setup network infrastructure for implementation of the Integrated

Financial Management Information System (IFMIS) and Government payment system
(G-Pay) in compliance with requirement of the National Treasury.
7.5 Corporate Communications

7.5.1 Media relations
The Commission worked with the mass media publicizing its activities through press
releases, press conferences; responding to media enquiries; media interviews; informal
meetings with editors to keep them abreast and sustain relationships.
7.5.2 Website and Social Media
The Commission interacted with the public through its website and social media which
support reporting of corruption and dissemination of information.
The Commissions website received a total of 364,159 hits at an average of 998 hits per
day. The highest number of hits came from Kenya at 66.31% followed by United States
at 21.97%, among others.
7.6 Research and Transformation
The Commission conducted one national survey on corruption and ethics and one thematic
study. The Commission also developed and launched a Strategic Plan for 2013-2018.
7.6.1 Corruption and Ethics Survey 2014
The survey on Corruption and Ethics was conducted from April to June 2014. The main
objective of the Survey was to map out service areas prone to corruption and unethical
practices at the national and county levels. A total of 7,343 respondents were interviewed
in all the 47 counties. Of these, 3,222 were service seekers, 2152 entrepreneurs, 1,072
national government employees and 897 county employees. Data analysis is ongoing.
7.6.2 An Evaluation of Corruption in Public Procurement: A Kenyan

Experience
The Commission conducted a thematic Study on corruption focusing on public procurement

in Kenya. The main objective of the study was to evaluate areas prone to corruption and
assess transparency and accountability in public procurement process. A total of 573
private suppliers and 377 public procurement practitioners were randomly selected and
interviewed in 13 sampled counties. In addition, a total of 369 public procurement files
were perused in the 13 counties visited. The key findings of the study are:
i) 50 percent of the respondents (public procurement practitioners) stated that
corruption is fairly widespread in public procurement in the country.
ii) 51 percent of suppliers were aware of PPDA and PPDR in Kenya.
iii) The level of adherence to public procurement laws and regulations was rated as
high among suppliers (43%).
iv) 37 percent of public procurement officials irregularly provide procurement
related information to suppliers.
v) 46% of suppliers indicated that they know firms either owned directly or
through proxy by public officers.
vi) Most suppliers (76%) do not report corruption and other malpractices in
procurement for fear of loss of business.
57
From these findings, it is recommended that:

i) Intensify enforcement and compliance of procurement laws and regulations by
PPOA and procuring entities
ii) Enhance training, education and public awareness on public procurement
related malpractices
iii) Streamline access to procurement information
iv) Address conflict of interest in public procurement
7.6.3 Strategic Plan 2013-2018
The Commission developed and launched the 2013-2018 Strategic Plan in a colorful
ceremony presided over by His Excellency Hon. Uhuru Kenyatta, President of the Republic
of Kenya and Commander in Chief of the Kenya Defence Forces in the presence of His
Excellency Hon. William Ruto, Deputy President of the Republic of Kenya, Hon. Githu
Muigai, Attorney General of the Republic of Kenya, Mr. Mumo Matemu, Chairperson of
EACC, Members of the Commission among other dignitaries on Tuesday, 18th March
2014 at the Kenyatta International Convention Center (KICC).
The Strategic Plan, whose vision is A Corruption free Kenyan society that upholds integrity
and the rule of law, is anchored on the Countrys government development blue prints:
the Kenya Vision 2030, the Constitution, the 2nd MTP (2013-2017), and sectoral and
thematic blue prints geared towards promoting socio-economic and political development
in the country. The Plan draws from the provisions of Chapter 6 of the Constitution
which spell out the principles of leadership and integrity, the Ethics and Anti-Corruption
Commission Act (EACCA), No. 22 of 2011, the Leadership and Integrity Act (LIA), No 19
of 2012 and other relevant laws related to anti-corruption, ethics and governance.
The strategic objectives that the Commission will pursue within the plan are:
i) To reduce prevalence of corruption and unethical conduct;
ii) To establish, maintain and strengthen partnerships and networks against
corruption and unethical practices;
iii) To promote ethics and good governance
iv) To mobilize resources for effective and efficient service delivery; and,
v) To strengthen the policy and legal framework.
58
His Excellency Hon. Uhuru Kenyatta, President of the Republic of Kenya and Commander in Chief of the Kenya
Defense Forces officially launches the EACC Strategic Plan (2013 2018) in the presence of His Excellency Hon.
William Ruto, Deputy President of the Republic of Kenya, Hon. Githu Muigai, Attorney General of the Republic
of Kenya, Mr. Mumo Matemu, Chairperson of EACC, Members of the Commission among other dignitaries on
Tuesday, 18th March 2014 at the Kenyatta International Convention Center (KICC).
7.7 Supply Chain Management
The Commission adopted aggregation and standardization of common user items and use
of term contracts for efficiency in the supply chain management. Further, the Commission
complied with the provisions of the Public Procurement and Disposal (Amendment)
Regulation, 2013 on preference and reservations.
59
Chapter 8:
National and International Engagements
8.1 Introduction
The Commission participated in national and international engagements. A highlight of

the various engagements is discussed hereunder.
8.2 National Engagements

8.2.1 Engagements with Various Stakeholders
The Commission held consultative forums with public, private and civil society institutions
to explore avenues for closer collaboration in the fight against corruption. These
stakeholders included:
i) The National Anti-Corruption Campaign Steering Committee (NACCSC);
ii) The Transparency International (TI) Board of Directors Chairperson and Vice
Chairperson;
iii) The United Nations Development Programme (UNDP);
iv) The Matatu Owners Association;
v) County Governments;
vi) The Commission for the Implementation of the Constitution (CIC);
vii) The Institution of Engineers of Kenya;
viii) The National Construction Authority;
ix) The Media Owners Association; and
x) The National Council of NGOs.
The Chairman NACCSC, Most Rev. Dr. Eliud Wabukala (seated third left), the Chairperson EACC, Mr. Mumo
Matemu, MBS (seated third right) and officials from both institutions during the courtesy call.
60
8.2.2 Media Awards
The Commission sponsored the Good Governance category of the Media Owners
Associations in the 3rd Annual Journalism Excellence Award (AJEA) on 3rd May 2014.
8.2.3 Corporate Guests
The Commission hosted several delegations and visitors from various institutions. These
included:
i) The Inspector General of the State of Djibouti on 19th May 2014;
ii) The National Integrity Agency of Romania;
iii) The British High Commission in Nairobi;
iv) The Royal Danish Embassy in Nairobi;
v) The French Embassy in Nairobi;
vi) The German Agency for International Cooperation (GIZ) Kenya;
vii) The Department for International Development (DFID) Kenya;
viii) The United States Embassy in Nairobi;
ix) The Kenya Medical Training College;
x) Students and teachers from Aga Khan Junior School who were researching the
topic Corruption is not an Option in preparation for an exhibition at their school;
xi) Sixty five (65) Integrity Club Members from Egoji TTC;
xii) 16 guests from Trees for Peace Network;
xiii) 46 students from USIU-Africa; and
xiv) Members of the Makueni Boys Integrity Club.
Integrity Club Members from Egoji TTC and pupils and from Aga Khan Junior School visited the Commission.
61
Mr. Hassan Issa Sultan, Inspector General of the State of Djibouti (seated left), Mr. Mumo Matemu, MBS,
Chairperson EACC (seated right) and officials from both the EACC and Inspectorate General of the State of
Djibouti during the courtesy call.
8.2.4 Corporate Social Responsibility
The Commission supported the Kenya Red Cross Society in aid of victims of the Westgate
Mall attack that occurred on 21st September 2013.
The EACC Chairperson Mr. Mumo Matemu presents a cheque for KShs. 500,000 to the Kenya Red Cross Society
Governor Dr. Mahmud Said. Looking on are the KRCS Director - External Relations and Resource Mobilization
Ms. Wariko Waita, EACC Commissioner Prof. Jane Onsongo, EACC Secretary/CEO Mr. Halakhe Waqo and
EACC Ag. Director Finance and Planning Mr. Ronald Wanyama.
62
8.3 International Engagements

8.3.1 Commonwealth Regional Conference for Heads of AntiCorruption Agencies in Africa
The Commission participated in the 4th Regional Conference for Heads of Anti-Corruption
Agencies in Africa was held in Accra, Ghana from 26th to 30th May 2014.
8.3.2 Participation on Conferences, Seminars and meetings
The Commission participated in conferences, seminars and meetings as follows:

i) The 7th Executive Committee Meeting and 7th Annual General Meeting of the
East African Association of Anti-Corruption Authorities (EAAACA) in
Kigali Rwanda from 4th to 7th November 2013. The meeting was hosted by
the Office of the Ombudsman, Rwanda and the theme was Strengthening Regional
Cooperation against Corruption in East Africa.
ii) The EAAACA Extra Ordinary Meeting in Kampala, Uganda from 24th to 26th
February 2014. The meeting whose theme was strengthening regional cooperation in
the fight against corruption. The EACC Chairperson was elected the President of the
association for a two-year term.
iii) The 2nd Africa Association of Anti-Corruption Authorities (AAACA) Conference in
Accra, Ghana from 14th to 20th September 2013. The objective of the meeting
was strengthening regional cooperation in the fight against corruption.
63
Chapter 9:
Challenges
9.1 Introduction
The Commission was faced with various challenges including constraints on policy and
legal framework, inadequate human resource capacity, inadequate presence in all regions
of Kenya and a slow adjudication of cases.
9.2 Policy and Legal Framework
The lack of a national ethics and anti-corruption policy to guide the fight against corruption
affects the efficient and effective implementation of anti-corruption initiatives. The
Government through the Attorney General and the Department of Justice, the national
Treasury, the Commission and other key stakeholders, is spearheading the development
of the National Ethics and Anticorruption Policy. In addition, proposals have been made
to strengthen the anti-corruption legal framework.
9.3 Slow Judicial Process and Adverse Court Decisions
Slow adjudication of cases, characterized by frequent adjournments, numerous judicial

review applications and constitutional references, affected execution of the Commission
mandate on asset recovery. The Commission will continue to parent with the key
institutions in the justice system to ensure that corruption cases are expedited.
9.4 Inadequate Capacity
Limited human resource capacity and forensic capabilities curtailed the Commission from
fully discharging its mandate of fighting corruption and promoting ethics. The Commission
will continue to development the requisite capacity to implement its mandate.
9.5 Demands of the Devolved System of Governance
Implementation of the devolved system of governance, introduced under the Kenya

Constitution 2010, has been associated with massive resource flows to the grassroots
with the aim of transforming the well-being of the local Kenyan communities. County
governments are grappling with the challenges of establishing robust structures and
systems to ensure transparency, accountability and good governance. The Commission
embarked on advisory programmes to support the counties undertake corruption risk
assessments and put in place systems that ensure corruption and unethical practices do
not take root and thrive. The programme will continue to ensure county governments
stem the challenges of resource management, corruption and unethical practices that are
likely to undermine the very principal objects of devolution and attainment of the Vision
2030 priorities.
64
Chapter 10:
Report of the Auditor General on the Finacial
Statements for Ethics and Anti-Corruption
Commission for the Year End 30th June 2014
10.1 Key Entity Information and Management
(a) Background information
The Ethics and Anti-Corruption Commission (EACC) is a statutory body established
under the Ethics and Anti-Corruption Act, 2011. Its mandate is to combat corruption
and economic crime through education, prevention, and law enforcement. Although,
the Commission is empowered to conduct mediation, conciliation and negotiation, a
distinction ought to be made between a power and a function. The commission is headed
by a chairman and two members who are responsible for the general policy and strategic
direction.
(b) Principal Activities
The principal activities of the Commission are to investigate corruption and economic
crimes, recover lost public property and obtain compensation for damaged public
property, prevent corruption, conduct public education on the dangers of corruption and
promote ethics and integrity.
(c)
Key Management
1. The Commissions day-to-day management is under the following key
organs:
2. The Office of the Chief Executive Officer
3. Directorate of Investigations and Asset Tracing
4. Directorate of Preventive Services
5. Directorate of Legal Services
6. Directorate of Ethics and Leadership
7. Directorate of Finance and Planning
8. Directorate of Human Resources and Administration
9. The Department of Supply Chain Management
(d) Fiduciary Management
This is vested on the Chief Executive Officer who is the accounting officer and is managing
the day to day operations of the commission.
Designation
Name
1. Secretary / Chief Executive Officer (CEO)
Halakhe Waqo
2. Deputy Chief Executive Officer Technical Services Michael Mubea
65
(e) Fiduciary Oversight Arrangements

1. Finance and Planning Committee
2. Risk and Audit Committee
3. Operations Committee
4. Human Resource and Training Committee
(f)
Entity Headquarters
Integrity Center
Valley Road / Milimani Junction
P.O. Box 61130-00200
Nairobi, Kenya
(g) Entity Contacts
Headquarters ,Nairobi
Integrity Centre
Milimani/Valley Road Junction
Po Box 61130-00200, Nairobi
E-maileacc@Integrity.go.ke
(h) Entity Bankers
Central Bank of Kenya
Haile Selassie Avenue
P.O. Box 60000
City Square 00200, Nairobi, Kenya
Kenya Commercial Bank
Milimani Branch
P.O. Box 69695-00400
Nairobi
(i)
Independent Auditors
Auditor General
Kenya National Audit Office
Anniversary Towers, University Way
P.O. Box 30084
GOP 00100
Nairobi, Kenya
(j)
Principal Legal Adviser
The Attorney General
State Law Office
Harambee Avenue
P.O. Box 40112
City Square 00200
Nairobi, Kenya
66
10.2 Commission Members
Mr. Mumo Matemu,

MBS
Chairman
Ms. Irene C. Keino,

MBS
Vice-Chairperson
Prof. Jane K.
Onsongo
Mr. Halakhe D. Waqo,

ACIArb
Mr. Abdi A. Mohamud

Director-
Mr. Vincent O. Okongo

Director Preventive
Services
Commissioner
Commission Secretary
10.3 Management Team
Mr. Halakhe D.
Waqo, ACIArb
Chief Executive
Officer
Mr. David K. Too

Director Legal
Services
Mr. Michael K Mubea

Deputy Chief Executive
Officer
Ms. Lucy W. Kinuthia

Director Ethics and
Leadership
Investigations
Ms. Jennifer Kimani

Director Finance
and Planning
Dr. Mary Kamaara

Ag. Director Human Resources
and Administration
67
10.4 Chairmans Statement
welcome this opportunity to endorse another year of great strides by the Commission,
as outlined in this report. In exercise of the mandate conferred to the Commission by
the Constitution of the Republic of Kenya and the enabling statutes, the Commission
has continued to discharge its mandate without relenting.
During this reporting period the Commission concluded the Job Evaluation exercise
and implementation of the same is underway. The Commission also developed its first
Strategic Plan for the period 2013-2018. The strategic goals during this period will be:
To prevent and combat the occurrence of corruption, economic crime and unethical
conduct; to trace, recover and restitute corruptly acquired assets; to foster a culture of
intolerance to corruption and unethical practices
Under the auspices of the Kenya Leadership and Integrity Forum (KLIF) which brings
together a total of fourteen (14) stakeholders from the public, private, civil society
and religious sectors in Kenya, the Commission is involved in the development and
implementation of the Kenya Integrity Plan (KIP). The Commission in conjunction with
the Office of the Attorney General is also involved in the development of the National
Anti-Corruption Policy.
The Commission is in the process of establishing additional offices across the country
to enable citizens at the county level be involved in the fight against corruption. This is
in line with the provisions of the Constitution regarding public participation. In addition,
the Commission has entered into partnerships with a number of institutions through
Memorandums of Understanding (MOUs) to strengthen the resolve to fight corruption.
Within the East African region, the Commission is actively involved in the activities of
the East African Association of Anti-Corruption Authorities (EAAACA). The association is
important in enhancing cooperation, mutual assistance and information sharing aimed at
combating corruption within the region.
On behalf of the Commission, I would like to thank the Management and all members
of staff for yet another successful year. We appreciate the dedication, professionalism,
integrity and the courage with which they perform their tasks. I would also like to thank
my fellow Commissioners for their commitment to the work of the Commission. Our
vision is a Corruption free Kenyan society that upholds integrity and the rule of law. I,
therefore, call upon all Kenyans and stakeholders to individually and collectively make a
conscious decision not to participate in or tolerate corruption in any of its manifestations.
Let us partner with the Commission in its endeavor to prevent and combat corruption in
the country.
Thank you
MUMO MATEMU, MBS

CHAIRMAN
68
10.5 Report of the Chief Executive Officer
he Commission has the pleasure to present this annual report for the financial
year 2013/2014, which is the second report since it took over from the Kenya AntiCorruption Commission following the changes in the anti-corruption institutional
framework introduced by the promulgation of the Ethics and Anti-Corruption Commission
Act in 2011. Those changes necessitated a transition process which the Commission was
engaged in for the better part of the last reporting period. It is my pleasure to state that
most of the transitional challenges that faced the Commission then have been addressed,
and the Commission is now fully and firmly focused on delivering on its mandate as a
fully established entity.
The Commission draws its mandate from a multitude of laws. Foremost in the legal
framework is the Constitution of Kenya, especially Chapter six on leadership and integrity.
Several laws have been enacted in implementing the requirements of the constitution, and
these include the Ethics and Anti-Corruption Commission Act, 2011 and the Leadership
and Integrity Act, 2012. The Commission also enforces the Anti-Corruption and Economic
Crimes Act, which is the principle law that provides for the investigations, prosecution and
adjudication of corruption and economic crime offences in Kenya. Over and above these
laws, the Commission also derives partial mandate in other pieces of legislation such as
the Public Officer Ethics Act, the Public Procurement and Disposal Act and regulations,
among others. Apart from the hitherto known mandate of combating and preventing
corruption, which is what most members of the public associate the Commission with, it
was also endowed with the wider function of mainstreaming ethics and integrity in both
the public and private sector, as required under chapter six of the Constitution.
This wide mandate ensured the need for scaling up of Commission programmes and
activities, which is reflected in the contents of this report. Of essence was the need to
ensure that the Commission services were scaled to the County governments following
the adoption of the devolved system of government in 2013. The report is also issued in
the backdrop of the just launched Commissions Strategic Plan 2013-2018, an ambitious
and goal-oriented plan through which the Commission intends to steer its strategic
direction and focus in the course of the next five years. Since the launch, the Commission
has rolled out on a high scale programmes and activities towards implementation of the
plan objectives, from which major achievements have been realized. These are provided
in detail in this report.
The report period also coincided with another important activity in the country which
is expected to have far reaching ramifications on anti-corruption initiatives, namely the
review of Kenya on implementation of its obligations under the United Nations Convention
against Corruption. The UNCAC is the main international convention which addresses all
matters to do with corruption and has the highest membership among states of any
other convention on corruption. It is significant that Kenya was the first country to both
sign and ratify the convention in 2003, hence the review is timely in order to identify
measures which need to be taken at the country level in order to ensure full compliance
with the Convention objectives.
69
I am happy to report that the Commission has continued to receive support from all our
stakeholders, especially the government of the Republic of Kenya which has granted us
immense support. The budgetary allocation to the Commission during the period; and
the continued promise of support from the government in future is a clear indication that
the government is firmly committed to the entrenchment of accountability and the fight
against corruption. We have also witnessed increased collaboration and cooperation from
our development partners who have continuously dedicated resources for some of the
Commissions programmes and activities.
I wish to thank the Commission and all members of staff for their dedication and
commitment towards achievements of the Commission goals and objectives during the
period. Despite the occasional challenges that the Commission has had to grapple with
over time, our staff have remained resilient and focused in the performance of their
duties, no doubt guided by the Commissions core values of integrity, professionalism,
fidelity to the law, courage, teamwork and innovation. As the Commission embarks on
implementing programmes for the next reporting year, I encourage all of us to maintain
that spirit. Together, we shall achieve more.
Thank you,
HALAKHE D. WAQO, ACIArb

SECRETARY/CHIEF EXECUTIVE OFFICER
70
10.6 Corporate Governance Statement
The commission operations and financial responsibilities are overseen by the Chief
Executive Officer. The operations are guided by an approved annual budget that is based
on programs whose performance is monitored through outputs and outcomes. The
budget is informed by detailed work plans that translate in to annual procurement plans.
The commission has put in place the following standing committees for oversight purposes;
Finance and Planning Committee, Risk and Audit Committee, Operations Committee
and Human Resource and Training Committee. These committees are comprised of the
commissioners and independent representatives co-opted from various directorates. In
addition an internal audit department charged with continuous review of systems of
internal controls and overall risk management is in place.
Operational performance is monitored on a monthly basis through periodic financial
reporting of actual expenditure versus budget performance which provides feedback to
user departments on appropriate action plans. Quarterly financial statements are also
produced to facilitate continuous evaluation of the overall financial performance of the
commission. The commission prepares annual statutory financial statements which are
audited by the Kenya National Audit Office (KENAO) who certifies them before inclusion
in the annual report.
10.7 Corporate Social Responsibility Statement
The EACCs corporate social responsibility is based on the fact that, as part of the Kenyan
society, we have responsibilities that go beyond our legal obligations for the benefit of
the society at large. Our corporate social responsibility entails community engagement,
supporting community activities, responding to emerging challenges, donating to
charities, helping the needy and application of ethical conduct and participating in matters
of topical national interest in Kenya. Our CSR strategy involves building relationships
and partnerships and working together with organizations that we believe advance the
wellbeing of Kenyans. The EACCs CSR decisions are made not only in the best interest
of the Commission but also that of our society.
10.8 Report of the Commissioners
The commissioners submit their report together with the audited financial statements for
the year ended June 30, 2014 which show the state of the Commissions affairs.
Principal activities
The principal activities of the Commission are to investigate corruption and economic
crimes, recover lost public property and obtain compensation for damaged public
property, prevent corruption, conduct public education on the dangers of corruption and
promote ethics and integrity.
Results
The results of the entity for the year ended June 30, 2014 are set out on page 76 to 93.
Directors
The members of the Commission who served during the year are shown on page 67 in
accordance with Ethics and Anti-Corruption Act, 2011.
71
Auditors
The Auditor General is responsible for the statutory audit of Ethics and Anti-corruption
Commission in accordance Public Audit Act, 2003 and the Ethics and Anti-Corruption
Commission Act, 2011.
10.9 Statement of Management Responsibilities
Section 164 of the Public Finance Management Act, 2012 and section 26 of the Ethics and
Anticorruption Act, require the Management to prepare Financial Statements in respect of
EACC, which give a true and fair view of the state of affairs of the Commission at the end
of the financial year and the operating results of the Commission for the period 2013/2014.
The Management are also required to ensure that the Commission keeps proper accounting
records which disclose with reasonable accuracy the financial position of the Commission.
The Management are also responsible for safeguarding the assets of the Commission.
The management are responsible for the preparation and presentation of the Commissions
Financial Statements, which give a true and fair view of the state of affairs of the Commission
for and as at the end of the financial year ended on June 30, 2014. This responsibility
includes: (i) maintaining adequate financial management arrangements and ensuring that
these continue to be effective throughout the reporting period; (ii) maintaining proper
accounting records, which disclose with reasonable accuracy at any time the financial position
of the entity; (iii) designing, implementing and maintaining internal controls relevant to the
preparation and fair presentation of the financial statements, and ensuring that they are free
from material misstatements, whether due to error or fraud; (iv) safeguarding the assets of
the Commission (v) selecting and applying appropriate accounting policies; and (vi) making
accounting estimates that are reasonable in the circumstances.
The Management accept responsibility for the Commissions Financial Statements, which have
been prepared using appropriate accounting policies supported by reasonable and prudent
judgments and estimates, in conformity with International Public Sector Reporting Standards
(IPSAS), and in the manner required by the PFM Act and the EACC Act. The management
are of the opinion that the Commissions financial statements give a true and fair view of
the state of Commissions transactions during the financial year ended June 30, 2014, and
of the Commissions financial position as at that date. The Management further confirm the
completeness of the accounting records maintained for the Commission, which have been
relied upon in the preparation of the Commission financial statements as well as the adequacy
of the systems of internal financial control.
Nothing has come to the attention of the Management to indicate that the Commission will not
remain a going concern for at least the next twelve months from the date of this statement.
Approval of the financial statements
The Commissions Financial Statements were approved by the Management on 25th August
2014 and signed on its behalf by:

__________________ _______________
Mr. Mumo Matemu
Mr. Halakhe D. Waqo
Chairman
Secretary/Chief Executive Officer
72
10.10 Report of the Independent Auditors on the

Commission
73
74
75

10.11 Statement of Financial Performance

For the year ended 30 June 2014
Note
2013-2014
2012-2013
Kshs
Kshs
Revenue from exchange transactions

Exchequer Receipts
1,130,000,000
1,220,000,000
Donor grants
350,000
14,662,375
Finance income - external investments
1,353,945
Other income
34,000
1,453,838
Total revenue
1,130,384,000
1,237,470,158
Expenses
Employee costs
802,012,279
Depreciation and amortization expense
64,759,005
57,483,951
Repairs and maintenance
19,077,428
21,106,913
General expenses
272,294,560
282,181,131
Total expenses
884,877,664
1,158,143,272
1,245,649,659
2,250,027
(27,759,272)
(5,929,474)
Other gains/(losses)
Gain on sale of assets
Surplus before tax
Taxation
Surplus for the period
(27,759,272)
The notes set out on pages 78 to 89 form an integral part of the Financial Statements
76
(5,929,474)
10.12 Statement of Financial Position

As at 30 June 2014
2013-2014
2012-2013
Note
Kshs
Kshs
Cash and cash equivalents
10
97,041,076
127,224,343
Receivables from non-exchange transactions
11
11,757,902
10,769,595
Inventories
12
15,457,105
15,204,367
124,256,083
153,198,304
Assets
Current assets
Non-current assets
Property, plant and equipment
13
281,628,273
301,696,457
Investments(Asset recovery Account)
19
42,154,240
94,096,958
Intangible assets
14
34,154,177
9,376,315
Long term receivables from exchange transactions(Gratuity fund

investment)
20
133,884,050
131,965,661
491,820,740
537,135,391
616,076,822
690,333,695
Total assets
Liabilities
Current liabilities
Trade and other payables from exchange transactions
16
20,731,232
16,614,321
Current portion of borrowings(Accrued liabilities and charges)
17
1,850,609
600,000
22,581,841
17,214,321
128,035,752
Non-current liabilities
Non-current employee benefit obligation(Gratuity fund)
21
128,113,350
Non-current provisions(Asset recovery account)
39
42,154,239
94,096,958
170,267,589
222,132,710
192,849,430
239,347,031
Reserves (Accumulated fund)
230,897,020
258,656,292
Accumulated surplus
192,330,372
192,330,372
423,227,392
450,986,664
616,076,822
690,333,695
Total liabilities
Net assets
Total net assets and liabilities
The Financial Statements set out on pages 73

89 were signed on behalf of the Commission by:
76 to
- 93
------------------------- ------------------------Mr. Halakhe D. Waqo

Mr. Halakhe D. Waqo Mr. Mumo Matemu
Secretary/Chief Executive
Officer
Secretary/Chief
Executive
Officer
Chairman
Mr. Mumo Matemu

Chairman
77
78
Balance as at 30 June 2014
192,330,372
230,897,020
(27,759,272)

Transfers to/from accumulated surplus/(Deficit)
258,656,292
192,330,372
(5,929,474)
264,585,766
Kshs
Kshs
192,330,372
Revenue Reserve
Accumulated
Fund
Surplus/(deficit) for the period
10.13 Statement of Changes in Net Assets
423,227,392
(27,759,272)
450,986,664
(5,929,474)
456,916,138
Kshs
Total
Ethicsand
andAnti-Corruption
Anti-CorruptionCommission
CommissionAnnual
AnnualReport
Report2013/2014
2013/2014
Ethics
10.14 Statement of Cash Flows

2013-2014
2012-2013
Kshs
Kshs
Cash flows From Operating Activities

Surplus/ (Loss) from operations
(27,759,272)
(5,929,474)
Add back non-cash payment (Depreciation)
47,684,479
52,796,497
Add back non-cash payment (Amortization)
17,074,528
4,687,454
Profit on disposal of Assets
(2,250,027)
36,999,735
49,304,450
Income from Operations

(Increase)/Decrease in inventories
(252,737)
(2,036,354)
(Increase)/Decrease in receivables & Prepayments
(988,307)
(5,307,131)
Increase/(Decrease) in payables
5,367,520
Net cash flows from operating activities
16,261,291
41,126,210
58,222,256
Purchase of property, plant and equipment
(27,616,293)
(100,000,276)
Gratuity fund Investment
(1,918,389)
Purchase of Intangible Assets
(41,852,391)
Cash flows From Investing Activities
Proceeds from disposal of plant, property and equipment

Net cash utilized in investing activities
(71,387,073)
3,796,210
(96,204,066)
Cash flows From Financing Activities

Refund of Surplus to the Treasury
(3,929,908)
Gratuity Fund
77,598
Net cash used in Financing activities
77,598
(3,929,908)
Net increase in cash and cash equivalents
(30,183,266)
(41,911,718)
Bank and Cash equivalents at beginning of year
127,224,342
169,136,061
Bank and cash equivalent at end of year
97,041,076
127,224,343
79
80
1,099,066,500
79,442,473
Total expenditure
Grants and subsidies paid
Rent paid
600,000
452,859,395
Goods and services
Finance cost
566,164,132
1,099,066,500
11,000,000
1,088,066,500
Kshs
2,000,000
144,000,000
1,500,000
(3,114,893)
200,000
154,571,472
(9,156,579)
146,000,000
146,000,000
Kshs
2013-2014
2013-2014
Compensation of employees
Expenses
Total income
Government grants and subsidies

Gains on disposal, rental income and agency
fees
Public contributions and donations
Revenue
Adjustments
Original
budget
2,000,000
1,243,066,500
1,500,000
76,327,580
800,000
607,430,867
557,008,053
1,245,066,500
11,000,000
1,234,066,500
Kshs
2013-2014
Final budget
(32,468,949)
1,162,852,949
402,278
72,496,524
768,870
532,388,122
556,797,154
1,130,384,000
34,000
1,130,000,000
350,000
Kshs
2013-2014
Actual on
comparable
basis
10.15 Statement of Comparison of Budget and Actual Amounts
(34,468,949)
80,213,551
1,097,722
3,831,056
31,130
75,042,745
210,899
(114,682,500)
(10,966,000)
(104,066,500)
350,000
Kshs
2013-2014
Performance
difference
10.16 Notes to the Financial Statements

1.
Statement of compliance and basis of preparation IPSAS 1
The Commissions Financial Statements have been prepared in accordance with and
comply with International Public Sector Accounting Standards (IPSAS). The financial
statements are presented in Kenya shillings, which is the functional and reporting
currency of the entity. The accounting policies have been consistently applied to all the
years presented.
The Financial Statements have been prepared on the basis of historical cost, unless
stated otherwise. The Cash Flow statement is prepared using the indirect method. The
Financial Statements are prepared on accrual basis.
2.
Summary of significant accounting policies
a) Revenue recognition
i)
Revenue from non-exchange transactions IPSAS 23
Income is recognized in the period in which it is received. Government and donor funding
is only recognized on receipt. Income is not accrued if its recoverability is considered
doubtful.
Interest income is recognized on a time proportion basis using the effective interest rate
method.
ii)
Transfers from other government entities
Revenues from non-exchange transactions with other government entities are measured
at fair value and recognized on obtaining control of the asset (cash, goods, services
and property) if the transfer is free from conditions and it is probable that the economic
benefits or service potential related to the asset will flow to the entity and can be
measured reliably.
iii)
Sale of goods
Revenue from the sale of goods is recognized when the significant risks and rewards of
ownership have been transferred to the buyer, usually on delivery of the goods and when
the amount of revenue can be measured reliably and it is probable that the economic
benefits or service potential associated with the transaction will flow to the entity.
iv)
Interest income
Interest income is accrued using the effective yield method. The effective yield discounts
estimated future cash receipts through the expected life of the financial asset to that
assets net carrying amount. The method applies this yield to the principal outstanding to
determine interest income each period.
81
b) Budget information IPSAS 24
The annual budget is prepared on the accrual basis, that is, all planned costs and income
are presented in a single statement to determine the needs of the entity. As a result
of the adoption of the accrual basis for budgeting purposes, there are no basis, timing
or entity differences that would require reconciliation between the actual comparable
amounts and the amounts presented as a separate additional financial statement in the
statement of comparison of budget and actual amounts.
c) Investment property IPSAS 16
Investment properties are measured initially at cost, including transaction costs. The
carrying amount includes the replacement cost of components of an existing investment
property at the time that cost is incurred if the recognition criteria are met and excludes
the costs of day-to-day maintenance of an investment property.
Investment properties are derecognized either when they have been disposed of or when
the investment property is permanently withdrawn from use and no future economic
benefit or service potential is expected from its disposal. The difference between the net
disposal proceeds and the carrying amount of the asset is recognized in the surplus or
deficit in the period of de-recognition. Transfers are made to or from investment property
only when there is a change in use.
d) Property, plant and equipment IPSAS 17
All property, plant and equipment are stated at cost less accumulated depreciation and
impairment losses. Cost includes expenditure that is directly attributable to the acquisition
of the items. When significant parts of property, plant and equipment are required to be
replaced at intervals, the Commission recognizes such parts as individual assets with
specific useful lives and depreciates them accordingly. Likewise, when a major inspection
is performed, its cost is recognized in the carrying amount of the plant and equipment as
a replacement if the recognition criteria are satisfied. All other repair and maintenance
costs are recognized in surplus or deficit as incurred. Where an asset is acquired in a
non-exchange transaction for nil or nominal consideration the asset is initially measured
at its fair value.
e) Intangible assets IPSAS 31
Intangible assets acquired separately are initially recognized at cost. The cost of
intangible assets acquired in a non-exchange transaction is their fair value at the date
of the exchange. Following initial recognition, intangible assets are carried at cost less
any accumulated amortization and accumulated impairment losses. The useful life of the
intangible assets is assessed as either finite or indefinite.
82
f) Research and development costs
The Commission expenses research costs as incurred. Development costs on an individual

project are recognized as intangible assets when the Commission can demonstrate:
i) The technical feasibility of completing the asset so that the asset will be
available for use or sale
ii) Its intention to complete and its ability to use or sell the asset
iii) How the asset will generate future economic benefits or service potential
iv) The availability of resources to complete the asset
v) The ability to measure reliably the expenditure during development

Following initial recognition of an asset, the asset is carried at cost less any accumulated
amortization and accumulated impairment losses. Amortization of the asset begins when
development is complete and the asset is available for use. It is amortized over the
period of expected future benefit. During the period of development, the asset is tested
for impairment annually with any impairment losses recognized immediately in surplus
or deficit.
g) Inventories IPSAS 12
Inventory is measured at cost upon initial recognition. To the extent that inventory was
received through non-exchange transactions (for no cost or for a nominal cost), the cost
of the inventory is its fair value at the date of acquisition.
After initial recognition, inventory is measured at the lower of cost and net realizable
value. However, to the extent that a class of inventory is distributed or deployed at no
charge or for a nominal charge, that class of inventory is measured at the lower of cost
and current replacement cost.
Net realizable value is the estimated selling price in the ordinary course of operations,
less the estimated costs of completion and the estimated costs necessary to make the
sale, exchange, or distribution.
Inventories are recognized as an expense when deployed for utilization or consumption
in the ordinary course of operations of the Entity.
h) Provisions IPSAS 19
Provisions are recognized when the Commission has a present obligation (legal or
constructive) as a result of a past event, it is probable that an outflow of resources
embodying economic benefits or service potential will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation.
Where the Commission expects some or all of a provision to be reimbursed, for example,
under an insurance contract, the reimbursement is recognized as a separate asset only
when the reimbursement is virtually certain. The expense relating to any provision is
presented in the statement of financial performance net of any reimbursement.
83
Contingent liabilities
The Commission does not recognize a contingent liability, but discloses details of any
contingencies in the notes to the financial statements, unless the possibility of an outflow
of resources embodying economic benefits or service potential is remote.
i) Changes in accounting policies and estimates IPSAS 3
The Entity recognizes the effects of changes in accounting policy retrospectively.

The effects of changes in accounting policy are applied prospectively if retrospective
application is impractical.
j) Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and cash at bank, short-term deposits
on call and highly liquid investments with an original maturity of three months or less,
which are readily convertible to known amounts of cash and are subject to insignificant
risk of changes in value. Bank account balances include amounts held at the Central Bank
of Kenya and at various commercial banks at the end of the financial year.
k) Comparative figures
Where necessary comparative figures for the previous financial year have been amended
or reconfigured to conform to the required changes in presentation.
m) Significant judgments and sources of estimation uncertainty

IPSAS 1
The preparation of the Commissions financial statements in conformity with IPSAS

requires management to make judgments, estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, and the disclosure of
contingent liabilities, at the end of the reporting period. However, uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment
to the carrying amount of the asset or liability affected in future periods.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty
at the reporting date, that have a significant risk of causing a material adjustment to the
carrying amounts of assets and liabilities within the next financial year, are described
below. The Entity based its assumptions and estimates on parameters available when the
consolidated financial statements were prepared.
84
Useful lives and residual values

The useful lives and residual values of assets are assessed using the following indicators
to inform potential future use and value from disposal:
i) The condition of the asset based on the assessment of experts employed by the
Entity
ii) The nature of the asset, its susceptibility and adaptability to changes in
technology and processes
iii) The nature of the processes in which the asset is deployed
iv) Availability of funding to replace the asset
v) Changes in the market in relation to the asset
n) Subsequent events
There have been no events subsequent to the financial year with significant impact in the
financial statements for the year ended 30 June 2014.
85

1. Transfers from other governments gifts and services-in-kind
2014
2013
Shs
Shs
1,130,000,000
1,210,000,000
Unconditional grants
Operational grant
Other (development)
1,130,000,000
10,000,000
1,220,000,000
Conditional grants
Other organizational grants
350,000
Total government grants and subsidies
14,662,375
1,130,350,000
1,234,662,375
2014
2013
2. Finance income - external investments

Shs
Shs
Cash investments and fixed deposits (interest)
1,353,945
Total finance income external investments
1,353,945
3. Other income
2014
Shs
Other income (sale of tender)
34,000
Total other income
34,000
2013
Shs
1,453,838
1,453,838
4. Employee costs
2014
2013
Shs
Shs
Employee related costs - salaries and wages
379,633,642
435,233,782
Employee related costs - contributions to pensions and medical

aids
180,353,387
201,811,462
Travel, motor car, accommodation, subsistence and other

allowances
Housing benefits and allowances
64,861,737
67,952,045
Total employee costs
177,163,513
179,880,374
802,012,279
884,877,664
2014
2013
5. Depreciation and amortization expense

Shs
Shs
47,684,479
52,796,497
Intangible assets
17,074,528
4,687,454
64,759,007
57,483,951
Total depreciation and amortization
10
86

6. Repairs and maintenance

2014
Shs
2013
Shs
Property
610,658
Equipment
460,557
478,753
1,740,443
17,088,283
11,495,484
917,930
7,392,234
Vehicles
Other
Total repairs and maintenance
19,077,428
21,106,913
2014
2013
8. General expenses
Advertising
Shs
Shs
30,808,373
29,758,165
Audit fees
696,000
600,000
Conferences and delegations
19,253,364
20,085,412
Consulting fees
4,248,330
6,412,715
Consumables
6,103,965
7,189,940
Electricity
9,105,929
8,918,678
Fuel and oil
14,852,834
16,240,413
Insurance
1,190,037
3,865,024
Legal expenses
1,292,521
801,814
Licenses and permits
15,318,933
3,628,732
Specialised materials
3,939,699
3,699,177
Postage
855,179
555,415
Rental
72,496,524
75,569,820
Security costs
23,537,800
24,953,680
Sewage and water costs
862,028
672,214
Research and development
7,024,201
9,790,693
Telecommunication
12,885,449
10,353,370
Training
33,873,766
27,845,313
Refurbishment of non-residential buildings

Bank charges
Wealth declaration system
6,022,237
4,757,608
Other expenses
7,158,522
Total general expenses
768,870
711,923
20,457,206
272,294,560
5,313,821
282,181,131
9. Gain on sale of assets

2014
Shs
Shs
2,250,027
Other assets
Total gain on sale of assets
11
2013
2,250,027

87
10. Cash and cash equivalents

2014
Bank
Shs
Shs
94,284,417
25,869,585
2,756,659
1,354,758
Cash-on-hand and in transit

Short-term deposits
Total cash and cash equivalents
2013
97,041,076
127,224,343
2014
2013
11. Receivables from non-exchange contracts

Current receivables
Shs
Staff imprest
3,986,716
Shs
3,563,562
Staff advances
1,827,731
2,943,333
Other receivables
5,943,455
4,262,700
Total current receivables
11,757,902
10,769,595
2014
2013
12. Inventories
Shs
Shs
9,264,508
9,011,771
(2,923,920)
(2,923,920)
9,116,517
9,116,517
15,457,105
15,204,367
Consumable stores
Provision for loss of inventory
Library books
Total
12
88
120,416,497
120,416,497
At 30 June 2013
19,874,312
17,594,771
22,874,741
20,361,202
2,513,539
(99,217)
2,839,187
17,621,232
40,469,512
233,998
40,235,514
(180,000)
2,144,557
At 30 June 2014
Net book values
At 30 June 2014
Disposals
Depreciation
At 30 June 2013
disposal
Depreciation
At 1 July 2012
Depreciation and impairment
120,416,497
Disposal
As at 30th June 2014
120,416,497
38,270,957
Shs
Shs
120,416,497
Plant and
Equipment
20,795,453
21,584,967
11,197,670
12,426,837
12,175,680
25,696,574
1,775,263
10,400,417
(3,858)
1,599,667
8,804,608
3,083,567
22,613,007
2,970,779
19,642,228
24,602,517
47,281,541
3,004,430
21,598,087
(7,000)
1,488,600
20,116,487
Shs
Furniture,
Fixtures &
Fittings
3,873,081
43,408,460
43,408,460
Shs
Security
Equipment
115,910,323
86,932,742
184,990,412
28,977,581
156,012,831
(13,077,519)
38,636,775
130,453,575
271,923,154
271,923,154
(14,532,400)
95,193,143
191,262,411
Shs
Motor Vehicles
Land
Additions during the year
As at 30th June 2013
Disposal
Additions during the year
As at 1st July, 2012
Cost or Valuation:
13. Property, plant and equipment
13,502,203
22,672,459
78,072,872
11,334,529
66,748,545
(76,623)
6,750,089
60,075,079
100,755,532
20,504,784
80,250,748
(84,000)
1,173,976
79,160,772
Shs
Computer
Equipment
301,696,459
281,628,273
323,820,480
47,684,479
276,136,001
(13,257,217)
52,796,498
236,596,722
605,448,752
27,616,293
577,832,460
(14,803,400)
100,000,276
492,635,584
Shs
Total
89

14. Intangible assets - software
Cost
Shs
At 1 July 2012
97,649,415
Additions
At 30 June 2013
97,649,415
Additions internal development
41,852,391
At 30 June 2014
139,501,806
Amortization and impairment

At 1 July 2012
83,585,646
Amortization
4,687,454
At 30 June 2013
88,273,100
Amortization
17,074,528
Impairment loss
At 30 June 2014
105,347,628
Net book values

At 30 June 2014
34,154,178
At 30 June 2013
9,376,315
15. Investment property (land)
Opening balance at 1 July
2014
2013
Shs
Shs
120,416,497
Additions
Depreciation
Closing balance at 30 June
90
120,416,497
120,416,497
120,416,497

16. Trade and other payables from exchange

transactions
Other payables
2014
2013
Shs
Shs
20,731,232
Total trade and other payables
16,614,321
20,731,232
16,614,321
2014
2013
Shs
Shs
17 Accrued liabilities and charges
Accrued audit fees
696,000
Accrued expenses - utilities
600,000
1,154,609
1,850,609
600,000
18 Contingency Liabilities
The Commission has given no guarantees to third parties. In the ordinary course of
business, the Commission has been sued in various cases with potential exposure estimated
at Kshs. 349 million. The Commission is a defendant or co-defendant in various litigations
and claims. The outcomes of these litigations and claims are yet to be determined; hence
the Commission has not made any provisions in these accounts towards contingent
liabilities.
15

91
Ethics
Commission
Annual
Report 2013/2014
Ethicsand
and Anti-Corruption
Anti-Corruption Commission
Annual Report
2013/2014
19. Asset Recovery Account
2014
2013
Shs
Shs
Balance brought forward
94,096,958
87,813,831
Funds recovered
year
28,216,690
6,288,647
in the
Payments
(80,159,408)
(5,520)
Total
42,154,240
94,096,958
20. Gratuity bank a/c balance
Gratuity Fund
2014
2013
Shs
Shs
128,113,350
128,035,752
21. Gratuity Fund Bank

Account
92
2014
2013
Shs
Shs
131,965,661
177,779,913
Additions
119,595,865
139,682,537
Payments
(117,677,476)
(185,496,789)
Total
133,884,050
131,965,661

22 Accumulated Fund

Total
2014
2013
Shs
Shs
192,330,372
192,330,372
192,330,372
192,330,372
2014
2013
Shs
Shs
258,656,292
264,585,766
(27,759,272)
(5,929,474)
230,897,020
258,656,292
23. Revenue Reserve

Refund of surplus
Surplus for the year
Total
24. Gratuity Fund Investment Interest Erroneously Surrendered to Treasury

The commission erroneously paid Kshs 22,000,000 /- of Gratuity Fund Investment Interest
to Treasury which is income to be credited back to the Gratuity Fund for the benefit of the
staff members. The error has been noted and is being deliberated by the commission
seeking ways on how to recover the same from the Treasury.
17
93

Ethics and
Anti-Corruption Commission Annual Report 2013/2014
10.17 Progress on Follow-Up of Auditor

Recommendations
The following is the summary of issues raised by the external auditor, and management
comments that were provided to the auditor. We have nominated focal persons to resolve
the various issues as shown below with the associated time-frame within which we expect
the issues to be resolved.
Ref. No.
on the
external
audit
Report
1
Issue/
Observations from
Auditor
Excess acting
allowance of
Kshs.5,862,895/90
paid to immediate
former Chief
Executive Officer
against provisions of
circular No
OP/CAB/55/1
Loss of 410 toners
worth
Kshs.2,923,920/Development of
United Nations
Development
Programme (UNDP)
funded wealth
Declaration
Management System.
Kshs.20,457,206/incurred without fully
attaining the desired
deliverables and
goals spelt out in the
projects financing
agreement signed on
5 April 2011.
----------------------------Mr. Mumo Matemu

Chairman
Mr. Mumo Matemu
Chairman
18
94
Management
comments
Status:
(Resolve/
Not
Resolved)
Timeframe: (Put a
date when you
expect the issue to
be resolved)
Details of evidence of
overpayment have been
provided to her lawyers
Not
Resolved
The Commission is
pursuing the
individual. The
timeframe is open as it
may involve a court
process.
Services of staff involved

were terminated, file
forwarded to Director of
public prosecutions to
institute prosecution.
Fully fledged Directorate
set up to look in to
issues of leadership
integrity including
wealth declaration and
conflict of interest. Time
elapsed before full
disbursement of funds.
Only output 2 of the
project is outstanding
and acquisition of wealth
management system is
in the strategic plan of
2013-2018
Not
Resolved
Open as it may involve

court process.
Resolved
The system
implementation is
ongoing.
------------------------Mr. Halakhe D. Waqo

Secretary/Chief Executive Officer
Mr. Halakhe D. Waqo
Secretary/Chief Executive
Officer

Annual Corruption Report 2013-2014

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Annual Corruption Report 2013-2014

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ETHICS AND ANTI-CORRUPTION COMMISSION

Tukomeshe Ufisadi, Tuijenge Kenya

Ethics and Anti-Corruption Commission Annual Report 2013/2014

2014 Ethics and Anti-Corruption Commission

Prepared and issued in accordance with Section 27 of the

Tukomeshe Ufisadi, Tuijenge Kenya

Ethics and Anti-Corruption Commission Annual Report 2013/2014

List of Abbreviations and Acronyms ...............................................................................

Members of the Ethics and Anti-Corruption Commission .............................................

Message from the Chairperson ........................................................................................

Message from the Secretary/Chief Executive Officer ....................................................

Tukomeshe Ufisadi, Tuijenge Kenya

Ethics and Anti-Corruption Commission Annual Report 2013/2014

Tukomeshe Ufisadi, Tuijenge Kenya

Ethics and Anti-Corruption Commission Annual Report 2013/2014

Ethics and Anti-Corruption Commission Annual Report 2013/2014

Tukomeshe Ufisadi, Tuijenge Kenya

Ethics and Anti-Corruption Commission Annual Report 2013/2014

Tukomeshe Ufisadi, Tuijenge Kenya

Ethics and Anti-Corruption Commission Annual Report 2013/2014

Tukomeshe Ufisadi, Tuijenge Kenya

Ethics and Anti-Corruption Commission Annual Report 2013/2014

List of Abbreviations and Acronyms

Africa Association of Anti-Corruption

Kenya Primary School Head Teachers

Anti-Corruption and Economic Crimes

Kenya Electricity Transmission

Kenya Institute of Curriculum

Acquired Immuno Deficiency Syndrome

Community Based Anti-Corruption

Kenya National Examinations Council

County Director of Education

Kenyatta National Hospital

Community Development Fund

Kenya Tea Research Foundation

Commission for the Implementation of

Matatu Owners Association

Capital Markets Authority

Ministry of Education Science and

Corruption Prevention Committee

National Campaign Against Drug

Corruption Risk Assessment

National Commission for Science,

Department for International

National Drought Management

Digital Video Disc

National Irrigation Board

Ethics and Anti-Corruption Commission

East African Association of AntiCorruption Authorities

Officer Commanding Police in a

Ecumenical Centre for Justice and

Officer Commanding Police in a

Education, Training and Public

Public Officers Ethics Act

Federation of Women Lawyers

Rapid Results Initiative

Rongo University College

Geothermal Development Company

German Agency for International

Seventh Day Adventist

General Service Unit

South Eastern Kenya University

Integrity Assurance Officer

Salaries and Remuneration